Benign inflation report perks up shares

Easing inflation stoked a buying spree at the local bourse, allowing the Philippine Stock Exchange index (PSEi) to snap out of a two-day losing streak.

The benchmark PSEi climbed by 0.38 percent, or 25.85 points, to close at 6,907.97, while the broader All-Shares Index rose by 0.26 percent, or 9.75 points, to settle at 3,739.27 by the closing bell.

“The local market moved sideways today as investors weighed the decline of the Philippines’ inflation last August against the lingering concerns over the health of the US economy,” Philstocks Financial Inc. senior analyst Japhet Tantiangco said. Inflation eased to 3.3 percent in August from 4.4 percent in July, according to the Philippine Statistics Authority.

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The latest print is also lower than 5.3 percent reading in the same period a year ago. Subsectors were mixed. Financials, industrial and services indices rose by 0.72 percent, 0.97 percent and 1.81 percent, respectively. The rest were in the red.

About 517.8 million shares valued at P5.07 billion were traded. Winners led losers, 96 to 94, while 46 issues were unchanged.

Among the most actively traded company was International Container Terminal Services Inc., increasing by 1.51 percent to P404 each. This was followed by AREIT Inc., down 4.27 percent to P35.90; BDO Unibank Inc., up 0.65 percent to P154; SM Investments Corp., flat at P900; Universal Robina Corp., down 0.39 percent to P89.50; and Metropolitan Bank & Trust Co., up 1.83 percent to P74.95. —Tyrone Jasper C. Piad

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