PSEi recovers, shrugs off US downgrade on better inflation prognosis

INQUIRER FILE PHOTO

MANILA  -The Philippine Stock Exchange index (PSEi) clawed back losses from the previous session, which came in the wake of a US credit downgrade, as investors placed bets ahead of the release of local inflation data on Friday, Aug. 4.

The PSEi rose 1.44 percent, or 93.48 points, to 6,576.76 while the broader All Shares index climbed 1.03 percent, or 35.63 points, to 3,499.49.

“The market brushed aside worries about the US credit downgrade and rallied on the back of strong corporate earnings from key names and expectations that the Philippine July [consumer price index] print will show sustained inflation deceleration,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a note to investors on Thursday.

“Investors took advantage of the recent selloff to pick up index names that have reported or are poised to report healthy [first half 2023] results,” he added.

Most PSE subindices pushed higher with property (+2.38 percent) taking the lead, followed by industrial (+1.67 percent), financial (+1.22 percent), holding firms (+0.97 percent) and services (+0.65 percent). Mining and oil slipped 0.6 percent.

Nearly 1.2 billion shares valued at P3.95 billion changed hands while net foreign selling ramped up to P752.52 million, data from the stock exchange showed.

Megaworld Corp. was the top-traded stock as it added 1.49 percent to P2.05 per share.

Ayala Land Inc. rose 4.70 percent to P28.95; BDO Unibank Inc., up 1.81 percent to P146.60; Universal Robina Corp., up 2.46 percent to P125; and Ayala Corp., up 1.39 percent to P620 per share.

Overall, there were 99 advancers against 81 losers while 50 companies closed unchanged. —Miguel R. Camus