Share prices rose yesterday on investor optimism after the latest inflation figure ended within monetary officials’ target. The peso closed lower.
The Philippine Stock Exchange index was up 54.90 points to 6,441.32, a 0.86 percent.
The broader All Shares index was up 14.65 points or 0.43 percent to 3,453.69. Gainers edged losers 103 to 82 with 46 stocks unchanged. Trading turnover reached P4.74 billion.
After the opening bell, the Philippine Statistics Office reported May inflation settled at 3.9 percent.
The peso closed at 58.78 to the dollar, down from 58.71 on Tuesday.
The currency opened at 58.80 and hit a high of 58.65 and a low of 58.80. Trading turnover reached $1.32 billion.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said investors cheered May’s inflation data, which came in at 3.9 percent, “settling near the lower end of the Bangko Sentral ng Pilipinas’ (BSP) forecast for the month.”
“The latest print also remained within the government’s 2- 4 percent target range. The statement from the BSP regarding the possibility of cutting policy rates ahead of the Federal Reserve raised rate cut hopes which added to the positive sentiment,” he said.
“Lastly, positive cues from Wall Street influenced trading for Wednesday’s session,” he added.
The BSP said the data was consistent with its expectations that inflation could accelerate over the near term.
On Tuesday, BSP Governor Eli Remolona had reiterated that the benchmark policy rate, currently at a 17-year high of 6.5 percent, could be cut before the US Federal Reserve starts it easing cycle.
Most actively traded SM Investments Corp. was up P32 to P850. International Container Terminal Services Inc. was up P1.40 to P335. Aboitiz Equity Ventures Inc. was down P0.30 to P37.70. BDO Unibank Inc. was up P1.10 to P138. Ayala Land Inc. as up P0.20 to P120. Ayala Corp. was up P1 to P590. Ban of the Philippine Islands was steady at P120. Jollibee Foods Corp. was down P0.60 to P223. Bloomberry Resorts Corp. was up P0.30 to P10.50. SM Prime Holdings Inc. was up P0.40 to P26.90.
