PH shares shake off inflation shock following BSP pledge

The Philippine Stock Exchange index (PSEi) closed higher on Friday after recovering from an early-session selloff that came in the wake of data showing inflation in October jumped to 7.7 percent.

The PSEi rose 0.48 percent, or 29.42 points, to 6,185.53 while the broader All Shares index added 0.49 percent, or 15.87 points, to 3,s273.70.

Index stocks clawed back losses toward the closing bell after falling below the 6,100 level.

This was despite the latest annual inflation print of 7.7 percent in October. The figure was also above the previous month’s reading of 6.9 percent, indicating that inflation has yet to peak.

Investors were likely encouraged after the Bangko Sentral ng Pilipinas (BSP) said on Friday that bringing down inflation remained a top priority during its next policy meeting on Nov. 17.

“The BSP remains prepared to take all further monetary policy actions necessary to bring inflation back to the target over the medium term,” it said in a statement.

The service, industrial, financial and holding firm subsectors gained while property and mining and oil retreated.

A total of 304.8 million shares valued at P3.97 billion changed hands while foreigners were net buyers for an amount totaling P265.6 million.

BDO Unibank Inc. was the top traded company as it gained 0.16 percent to P127 per share.

There were 93 advancers against 66 losers while 54 companies closed unchanged.