Elation over inflation news continues as PSEi breaches 7,500
The spillover from last week’s inflation surprise continued on Monday as investors bought up local shares, allowing the Philippine Stock Exchange index (PSEi) to breach the 7,500 territory for the first time this year.
The benchmark PSEi climbed by 1.16 percent, or 86.76 points, while the broader All-Shares index rose by 1.02 percent, or 41.32 points, to close at 4,082.97.
The PSEi last saw the 7,500 level on Feb. 10, 2022 or nearly three years ago.
“Investors continued to cheer the significant slowdown of the Philippines’ inflation last September as it strengthens the case for further monetary policy easing by the Bangko Sentral ng Pilipinas,” Philstocks Financial Inc. senior analyst Japhet Tantiangco said.
Inflation declined to 1.9 percent in September from 3.3 percent in August and 6.1 percent in the same month last year.
The Philippine Statistics Authority attributed this to the slower rise in food, transport, housing, water and electricity costs. Inflation averaged 3.4 percent year-to-date, which is within the government’s target range of 2 percent to 4 percent.
Article continues after this advertisementAbout 1.36 billion shares valued at P7.87 billion were traded at the stock market on Monday. Winners led losers, 129 to 79, while 49 issues were unchanged.
Article continues after this advertisementAll the subsectors were in the green except for financials and mining and oil, which fell by 0.46 percent and 0.39 percent, respectively.
The most actively traded shares were that of Ayala Corp., rising by 3.50 percent to P740 apiece, after a subsidiary announced selling its boutique airline to Cebu Pacific.
It was followed by International Container Terminal Services Inc., up 2.14 percent to P429; SM Investments Corp., up 0.50 percent to P1,000; BDO Unibank Inc., up 1.27 percent to P160; Metropolitan Bank & Trust Co., down 1.62 percent to P79.10; and Ayala Land Inc., up 3.38 percent to P38.25.
Other active names were Jollibee Foods Corp., up 2.08 percent to P275; Globe Telecom Inc., up 2.50 percent to P2,460; Puregold Price Club, up 8.49 percent to P33.85; and Bank of the Philippine Islands, down 1.66 percent to P142.40.
