By Arra B. Francia, Senior Reporter

STOCKS FIRMED UP on Tuesday as investors welcomed the slower inflation reading for April.

The 30-member Philippine Stock Exchange index (PSEi) climbed 0.61% or 48.33 points to close at 7,910.63 yesterday, snapping its two-day decline. The broader all-shares index likewise rose 0.54% or 26.69 points to close at 4,886.55.

“The index had a breather today as it gained 48.33 points on the back of April’s inflation figure, as well as calmer US markets last night,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Tuesday.

The Philippine Statistics Authority reported Tuesday that headline inflation slowed to 3% in April from the 3.3% print in March and the 4.5% pace seen a year ago. This marks the slowest inflation rate since January 2018, and continues its decline for the sixth month.

The inflation print was also lower than the 3.1% median estimate in BusinessWorld’s poll of 10 economists late last week. It also stands within the 2.7-3.5% forecast given by the Bangko Sentral ng Pilipinas (BSP) last month.

Inflation now averages at 3.6% year-to-date, well within the BSP’s 2-4% target for the year.

Eagle Equities, Inc. Research Head Christopher John Mangun, however, noted that the PSEi’s performance on Tuesday “almost ignored the impressive inflation numbers,” saying that the main index is still moving sideways.

“There is still a strong indication that investors are waiting till after the election to start getting serious about the market. It is a very good time to start accumulating issues while they are at a lower price. We are still anticipating a big move in the next couple of weeks,” Mr. Mangun said in a separate e-mail.

The industrials counter was the lone sub-index that ended with a loss, dropping 0.43% or 51.11 points to 11,659.70.

The rest closed in positive territory, led by services which soared 2.31% or 36.97 points to 1,633.61. Financials jumped 0.8% or 14.04 points to 1,749.69; mining and oil increased 0.53% or 41.20 points to 7,728.65; holding firms went up 0.36% or 27.82 points to 7,568.65; while property advanced 0.31% or 13.26 points to 4,209.90.

Some 513.19 million issues valued at P5.51 billion switched hands, lower than the previous session’s P6.26 billion. Advancers outpaced decliners, 100 to 86, while 50 names were unchanged.

Net foreign outflows persisted, albeit slimming to P7.93 million versus Monday’s P22.23 million.

The PSEi defied the mostly negative performance seen in markets overseas as they digested impact of the rising tensions between the United States and China.

The Dow Jones Industrial Average slipped 0.25% or 66.47 points to 26,438.48. The S&P 500 index dropped 0.45% or 13.17 points to 2,932.47, while the Nasdaq Composite index fell 0.5% or 40.71 points to 8,123.29.

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