PSEi smashes 6,800 in promising breakout

The Philippine Stock Exchange index (PSEi) rallied above 6,800 on Thursday as investors cheered the rosy inflation outlook by Bangko Sentral ng Pilipinas Governor Felipe Medalla.

The PSEi jumped 1.85 percent, or 124.19 points, to 6,833.53 while the broader All Shares index rose 1.37 percent, or 48.58 points, to 3,588.04.

Analysts believe a sustained breakout above 6,800 could signal a reversal of the PSEi’s downward trend.

Medalla said in an interview with ANC on Thursday the worst of the consumer price surge was potentially over and inflation could drop below 4 percent in the third quarter of 2023, which was within the government’s target range of 2-4 percent.

Investors were also monitoring the latest US inflation print, which would influence the Federal Reserve’s upcoming interest rate decisions.

Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC) pulled back from a multiday rally after disclosing on Thursday it was in talks with various interested investors but no deal had been finalized.

“As the leading infrastructure company with a very attractive portfolio of assets, MPIC receives a lot of interest from investors,” Metro Pacific said in a stock exchange filing.

“To date however, MPIC has not entered into any definitive agreement for an acquisition by any party of a substantial interest in MPIC, and neither is MPIC aware of any definitive agreement entered into by its principal shareholders,” it added.

Metro Pacific shares sank 1.3 percent to P3.79 per share.