PH shares unbothered by hot US inflation report

MANILA  —Philippine stocks gained on Wednesday as investors brushed aside new US data showing inflation rising faster than expected while foreign money continued to pour into domestic equities.

The benchmark Philippine Stock Exchange Index (PSEi) added 0.39 percent, or 26.61 points, to 6,854.53 while the broader All Shares index was up 0.32 percent, or 11.35 points, to 3,588.23. A total of 510.6 million shares valued at P4.71 billion changed hands while foreign investors made net purchases of P685.2 million.

Investors were also keenly awaiting the outcome of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting set for today, Feb. 15. A number of analysts expects the BSP to keep interest rates on hold. Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said the US inflation data signaled that cost pressures remained a concern.

READ: Asian shares drop after US January inflation data sends Dow down

“The inflation came out hotter than expected, raising doubts that the [US Federal Reserve] will be cutting rates several times this year. The [consumer price index] rose by 3.1 percent, higher than the 2.9 percent polled by economists. Oil climbed up on the back of the stronger than expected US [inflation],” he said.

READ: Rents boost US consumer prices in Jan

Industrial, financials, holding firms and property stocks rose as mining and oil and services slumped.

International Container Terminal Services Inc., the most actively traded stock, shed 0.74 percent to P270 per share. BDO Unibank Inc. followed, rising 0.13 percent to P152.60 apiece.

Overall, there were 90 gainers against 89 losers while 47 companies closed unchanged.