Local equities firmed up on Thursday, April 5, amid faster inflation recorded in March.
The bellwether Philippine Stock Exchange index firmed up 0.31% or 24.49 points to close at 8,022.16. The broader all shares index also edged higher by 013% or 6.42 points to finish at 4,864.45.
“Philippine markets closed on a slightly positive despite the higher then expected inflation, the sudden closure of Boracay, and issues surrounding contractualization,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.
The Philippine Statistics Authority reported on Thursday that prices of basic good and services accelerated by 4.3% in March, beyond the Bangko Sentral ng Pilipinas (BSP)’s 2-4% target. Price increases were noted in food and non-alcohol beverages, alcoholic beverages and tobacco, among others.
This brought the first quarter’s inflation to 3.8%, toward the higher end of the BSP target.
“So far, the PSEi has been struggling to find support above 8,000 as local inflation rose beyond the general consensus. This may scare off investors because this rapid rise may be indicative of an overheating economy,” Timson Securities, Inc. equity trader Jervin S. de Celis said in a mobile phone message.
Sectoral indices were equally split between losers and advancers.
The counter for holding firms led the day’s gainers, adding 0.63% or 50.41 points to close at 8,031.02. Financials rose 0.24% or 4.92 points to 2,049.83, while property also climbed 0.24% or 8.67 points to 3,696.21.
Mining and oil meanwhile gave up 1.75% or 200.22 points to 11,237.91. Services shed 0.28% or 4.66 points to 1,653.81, and industrials dropped 0.13% or 14.7 points to 11,295.39.
Trading thinned to P5.77 billion on Thursday, lower than Wednesday’s P6.11 billion after some 4.02 billion issues switched hands.
Decliners beat advancers, 103 to 83, while 55 issues closed flat.
Foreign investors were back in selling territory, recording net sales of P211.64 million, against net foreign inflows of P57.46 million on Wednesday. — Arra B. Francia
 

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