PSEi rallies as PHL inflation eases to 5-month low
PHILIPPINE SHARES rallied for a third straight day on Wednesday as headline inflation slowed to a five-month low in February.
The main Philippine Stock Exchange index (PSEi) rose by 0.95% or 57.66 points to end at 6,121.77 on Wednesday, while the broader all shares index jumped by 0.98% or 35.58 points to close at 3,664.54.
“The local market rose further this Wednesday as investors appreciated the Philippines’ February inflation rate, which came in below expectations at 2.1%,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The slowdown in the country’s inflation is seen to help in the gross domestic product performance, primarily household consumption. It is also seen to raise prospects with respect to the Bangko Sentral ng Pilipinas’ (BSP) policy easing.”
“Philippine shares were bought to above 6,100 mark following better-than-expected February inflation print,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
Philippine inflation slowed to 2.1% in February from 2.9% in January, preliminary data from the Philippine Statistics Authority released on Wednesday showed.
This was the slowest monthly print in five months or since the 1.9% in September 2024.
This was also below the BSP’s 2.2%-3.0% forecast for the month and the 2.6% median estimate in a BusinessWorld poll of 18 analysts.
The Monetary Board will next meet to discuss policy on April 3. Analysts said slower February inflation gives the BSP room to resume its rate-cut cycle at next month’s meeting following its surprise pause at the Febru-ary review.
BSP Governor Eli M. Remolona, Jr. last month said the central bank is still in easing mode, signaling the possibility of up to 50 basis points (bps) worth of cuts this year.
The Monetary Board has delivered 75 bps in reductions to borrowing costs since it began its easing cycle in August 2024, with the policy rate now at 5.75%.
Almost all sectoral indices closed higher on Wednesday. Property surged by 2.99% or 64.83 points to 2,232.69; holding firms climbed by 1.15% or 59.08 points to 5,160.69; mining and oil went up by 1.12% or 91.17 points to 8,220.37; industrials rose by 0.75% or 64.73 points to 8,696.06; and financials increased by 0.21% or 4.90 points to 2,315.38.
Meanwhile, services inched down by 0.18 point to end at 1,942.34.
Value turnover rose to P7.35 billion on Wednesday with 588.42 million shares traded from the P7.09 billion with 907.59 million issues that changed hands on Tuesday.
Advancers outnumbered decliners, 114 versus 77, while 55 names were unchanged.
Net foreign selling declined to P106.02 million on Wednesday from P266.33 million on Tuesday. — Revin Mikhael D. Ochave
