PSEi extends winning streak on easing inflation
MANILA, Philippines – Local stocks rose for a fifth straight session on slower June inflation and gains in International Container Terminal Services, Inc., though trading remained subdued.
The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.37 percent, or 23.12 points, to close at 6,247.11.
READ: Inflation eases to 6.4% in June
Philstocks Financial Inc. research manager Japhet Tantiangco said the market drew support from ICTSI’s rebound, while sentiment also improved after the country’s inflation rate eased to 6.4 percent in June from 6.8 percent in May, reinforcing hopes that price pressures are beginning to moderate.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse extended its uptrend as inflation data came in better than expected, reinforcing optimism on the inflation outlook.
“The softer print, which also eased from the previous month, fueled buying pressure. Overall sentiment remained constructive as investors positioned for a possible more accommodative policy environment,” Limlingan said.
Light trading
Despite the advance, investor participation stayed muted.
Net value turnover reached only P5.33 billion, as many market participants continued to assess the economic outlook, Philstocks said.
Foreign investors, however, ended the session as net buyers with P770.42 million in net inflows.
Sectoral performance was mixed. The services index led the gainers after rising 2.76 percent, while conglomerates posted the biggest decline, falling 1.28 percent.
ICTSI led the index with a 3.97 percent gain to P930 as investors returned.
On the other hand, ACEN Corp. was the biggest laggard, dropping 4.36 percent to P3.07.
Analysts said the latest gain extended the local bourse’s recent recovery, with easing inflation helping offset lingering caution among investors.
READ: Nomura: PH inflation seen falling faster on lower oil prices
However, the relatively light trading activity suggests many participants are still waiting for stronger catalysts before taking on larger positions.
Analysts said sustained gains will depend on improving macro conditions and broader participation despite foreign buying support. /pai INQ
