Share prices closed higher Tuesday on lower inflation rate last month.
The peso was up.
The Philippine Stock Exchange index rose 27.04 points to 6,755.26, a 0.4 percent hike.
The broader All Shares index was up 13.91 points or 0.39 percent to 3,539.05.
Losers and gainers were even at 93 with 57 stocks unchanged. Trading turnover reached P4.76 billion.
The peso closed at 56.20 to the dollar, up from 56.29 on Monday.
The currency opened at 56.37 and hit a high of 56.14 and a low of 56.39. Trading turnover reached $1.26 billion.
Traders are pricing in a 15 percent chance of a Fed rate cut in March, down from 46 percent a week ago, according to the CME Group’s FedWatch Tool.
“Most Asian central banks are likely to wait for the Fed to begin cutting rates before moving themselves,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
Data in the Philippines showed annual inflation increased at its slowest pace in over three years. However, the Bangko Sentral ng Pilipinas (BSP), which is set to meet on February.15, reinforced its hawkish stance saying monetary policy would have to stay “sufficiently tight” until a sustained downward trend in inflation becomes evident.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said investors cheered the January inflation data of 2.8 percent.
“The data settled at the lower-end of the BSP’s inflation projection for the month. It was also the second straight month wherein inflation fell within the government’s target range of 2-4 percent. Adding to the positive sentiment was the report from Moody’s Analytics wherein it sees the Philippine economy performing better in the second half of the year amid cooling inflation and declining interest rates,” Plopenio said.
Most actively traded BDO Unibank Inc. was up P0.60 to P148. International Container Terminal Services Inc. was up P4 to P259.80. SM Investments Corp. was up P6 to P906. Century Pacific Food Inc. was up P1.55 to P36.75. SP New Energy Corp. was down P0.02 to P1.16. Jollibee Foods Corp. was down P0.60 to P260.60. Universal Robina Corp. was down P0.50 to P111.50. Ayala Land Inc. was up P0.55 to P34.15. GT Capital. Holdings Inc. was up P7 to P690.
