PSEi climbs to 6,400 level before inflation data
PHILIPPINE SHARES climbed for a second straight day on Tuesday as expectations of cooling inflation boosted investor sentiment.
The bellwether Philippine Stock Exchange index (PSEi) rose by 0.94% or 60.20 points to close at 6,412.86, while the broader all shares index went up by 0.73% or 27.54 points to 3,770.95.
“The local market extended its rise as investors continued to draw optimism from the expectation that inflation remained below the government’s target last May, giving the Bangko Sentral ng Pilipinas (BSP) more leeway to cut rates,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Philippine shares broke past the 6,400 market once again, driven by broad market optimism ahead of Thursday’s inflation report from last month,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
The Philippine Statistics Authority will release May inflation data on Thursday (June 5).
A BusinessWorld poll of 17 analysts yielded a median estimate of 1.3% for the May consumer price index, slower than the 1.4% in April and 3.9% in the same month a year ago. This is within the central bank’s 0.9%-1.7% forecast for the month.
If realized, this would be the lowest headline inflation print in more than five years or since the 1.2% in November 2019.
“Hopes that the leaders of the US and China would have a productive talk this week also helped the market,” Mr. Tantiangco added.
US President Donald J. Trump and Chinese leader Xi Jinping will probably speak this week, White House Press Secretary Karoline Leavitt said on Monday, days after Mr. Trump accused Beijing of violating an agreement to roll back tariffs and trade restrictions, Reuters reported.
The call between the two leaders will be closely watched by markets, which have been roiled by tariff-induced trade tensions between the world’s two largest economies that continue to simmer.
Almost all sectoral indices ended higher on Tuesday. Property climbed by 1.63% or 36.80 points to 2,282.32; holding firms increased by 1.48% or 79.30 points to 5,411.01; industrials rose by 1.2% or 107.19 points to 8,996.76; mining and oil went up by 0.8% or 79.51 points to 9,969.59; and services added 0.74% or 16.08 points to end at 2,182.38.
Meanwhile, financials inched down by 0.06% or 1.53 points to 2,398.57.
“Bloomberry Resorts Corp. was the day’s index leader, surging 12.27% to P4.94. BDO Unibank, Inc. was at the tail end, falling 2.04% to P158.70,” Mr. Tantiangco said.
Value turnover fell to P5.99 billion on Tuesday with 739.36 million shares traded from the P7.08 billion with 617.85 million issues exchanged on Monday.
Advancers narrowly beat decliners, 103 versus 102, while 52 names were unchanged.
Net foreign buying went down to P168.63 million on Tuesday from P418.29 million on Monday. — Revin Mikhael D. Ochave
