Stocks cheer lower-than-expected inflation; peso down

- Advertisement -

Share prices closed up Tuesday on lower- than-expected inflation print last month.

The peso was down.

The Philippine Stock Exchange index (PSEi) was up 53.29 points, a 0.88 percent hike to 6,131.32.

- Advertisement -

The broader All Shares index was up 18.19 points or 0.55 percent to 3,310.34.

Gainers edged losers 89 to 80 with 48 stocks unchanged. Trading turnover reached P2.99 billion.

The peso closed at 56.115 to the dollar, down from 55.91 on Monday.

The currency opened at 56 to the dollar, an intraday high, and hit a low of 56.29. Trading turnover reached $1.62 billion.

Juan Paolo Colet, managing director at China Bank Capital Corp., said the  investors cheered the surprisingly low October inflation of 4.9 percent.

“This reinforced growing expectations that the BSP (Bangko Sentral ng Pilipinas)  will not hike its policy rate this month and perhaps the rest of the year. Nonetheless, daily value turnover was relatively low as some market participants opted to stay on the sidelines ahead of the release of third quarter GDP data on Thursday,” he said.

Annual inflation in the Philippines slowed for the first time in three months  mainly due to slower increases in food prices, data showed.

The inflation print will likely ease pressure on the BSP, which meets next on November 16, to decide on its monetary policy.

Most actively traded BDO Unibank Inc. was up P3.20 to P133.20. Ayala Land Inc. was down P0.10 to P28. SM Prime Holdings Inc. was up P0.05 to P31.05. Bank of the Philippine Islands was up P4 to P104. Manila Electric Co. was up P12.40 to P364.40. SM Investments Corp. was down P4.50 to P829. Universal Robina Corp. was up P1.10 to P112.40.

Metropolitan Bank and Trust Co. was up P0.35 to P52.70. Globe Telecom Inc. was up P8 to P1,770. GT Capital Holdings Inc. was up P10 to P545.

Author

- Advertisement -

Share post: