Investors cheer Philippine inflation cooling for second month
MANILA – The benchmark Philippine Stock Exchange index (PSEi) saw a modest rebound on Tuesday after the government released data showing inflation slowing down for a second month in a row and as investors prepared for the Lenten break.
By the closing bell, the PSEi rose 0.25 percent, or 16.47 points, to 6,4881.51 while the broader All Shares index added 0.14 percent, or 4.78 points, to 3,486.74.
“Philippine shares outperformed the region as headline inflation for March came in better than expected at 7.6 percent,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Wednesday.
The headline inflation figure in March cooled down from the 8.6-percent print in February, according to the Philippine Statistics Authority.
Prices remained a burden to consumers, however, as core inflation heated up to 8 percent from 7.8 percent in March.
“Despite the decline in the headline print, core inflation hasn’t caught up yet,” Bank of the Philippine Islands (BPI) said on Wednesday.
“This means that second round inflation is not over yet and inflationary pressure from demand remains significant,” it added.
BPI said rising core inflation “may justify another rate hike in the next Monetary Board meeting.”
“[T]he inflation story may become favorable in the second half of the year, barring any global commodity price shocks and provided that non-monetary measures prove effective in normalizing food supply situation in the country,” BPI said. INQ
