Slower inflation forecast lifts PSEi near 6,000

MANILA  -With inflation seen cooling, investors bought up shares on the first day of trading for the month but the Philippine Stock Exchange index (PSEi) failed to break through the 6,000 level.

The benchmark PSEi climbed by 0.26 percent, or 15.49 points, to close at 5,989.27 while the broader All Shares index rose by 0.27 percent, or 8.88 points, to settle at 3,263.05.

“[The] expectation that the October inflation rate would be lower than September’s figure also boosted the sentiment,” said Claire Alviar, assistant manager for research and online engagement at Philstocks Financial Inc.

READ:  BSP sees softer October inflation

The Bangko Sentral ng Pilipinas projected that inflation last October settled within 5.1 percent to 5.9 percent due to lower prices of rice, meat and vegetables, among others. In September, inflation was at 6.1 percent. “Despite these gains, market participation remained weak, preventing the market from breaching the 6,000 level … ,” she added.

China Bank Capital Corp. managing director Juan Paolo Colet said investors also cheered the recent move of the Federal Reserve to hold interest rates to further assess the economy.

“The local index started the month in positive territory in line with other Asian equity markets on the back of US Federal Reserve chair Jerome Powell’s remarks that were seen as less hawkish than expected,” he said.

All subsectors were in the green except for financials, which dropped by 0.48 percent. The biggest gainer was services with a 1.64-percent uptick.

A total of 301.35 million shares amounting to P3.76 billion were traded. Winners led losers, 106 to 59, while 49 issues were unchanged.

Shares of BDO Unibank Inc. were the most actively traded, climbing by 0.39 percent to P128 each.

Bank of the Philippine Islands followed as it went down 1.44 percent to P99.05; International Container Terminal Services Inc., up 1.89 percent to P205; GT Capital, down 3.83 percent to P528; SM Investments Corp., up 0.50 percent to P805 and Ayala Land Inc., down 1.80 percent to P27.35. INQ