The share market sustained a rally for the third day running in what analysts described as a “furious comeback” after Friday’s rout, with Wednesday’s sentiment buoyed by an unexpected calm in the much awaited inflation report for January.
The Philippine Stock Exchange index (PSEi) closed up 192.02 points, gaining 3.15 percent to 6,281.08 points.
The broader All Shares index jumped 78.73 points or 2.18 percent to settle at 3,696.66 points.
Gainers edged losers 127 to 68, with 50 stocks unchanged. Trading turnover reached P7.5 billion, growing from Tuesday’s P7.35 billion.
Not long after the opening bell, traders welcomed a government report that inflation in January steadied at 2.9 percent, similar to the rate of increase in the consumer price index for December, though slightly higher than the previous January’s 2.8 percent.
Most analysts had expected slower inflation for January than the prior month.
Stockbroker SB Equities said inflation “unexpectedly steadied” despite the upside surprise.
“We think inflation remains manageable as the January print is a notch below the midpoint of the government’s 2-4 percent target,” it said in a note, although adding that food inflation picked up at 4 percent for the month, compared with 3.5 percent in December.
“We still expect the BSP (Bangko Sentral ng Pilipinas) to cut the policy rate by 25 basis points (bps) to 5.50 percent at its 13 Feb Monetary Board meeting as inflation is still within target…,” it added.
“Philippine shares made another furious comeback as the latest CPI came within many analysts’ expectations,” Luis Limlingan, managing director at Regina Capital and Development Corp., said.
He said investor sentiment also received an added push from the overnight uptick on Wall Street “as investors sought stability amid fresh global trade developments.”
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., cited a “healthy upward correction” shown by the market, which he said was also supported by “bargain hunting/bottom-fishing activities.”
The peso closed at 58.095 to the dollar, up from 58.34 on Tuesday. The currency opened at 58.05, hitting a high of 57.98 and a low of 58.135. Trading turnover reached $1.82 billion.
SM Prime Holdings Inc. added P1.75 to close at P26. International Container Terminal Services Inc. gained P11 to P378. BDO Unibank Inc. closed up P2.50 at P147. Ayala Land Inc. rose P1.30 to P1.30. China Banking Corp. dropped P2 to P90. DigiPlus Interactive Corp. added 1.40 to P31.30. SM Investments Corp. gained P44 to P830. Jollibee Foods Corp. closed up P9.60 at 244.50. Metropolitan Bank and Trust Co. firmed P1.60 to P73.40. Bank of the Philippine Islands climbed P3.50 to settle at P127.80.