Share prices jumped on Tuesday, boosted by news that the April inflation rate reached its lowest level in 5 1/2 years, ignoring Wall Street’s overnight drop.
After the opening bell, the government announced that April’s inflation stood at 1.4 percent, slower than the 1.8 percent recorded in March.
Philippine Stock Exchange index (PSEi) gained 59.06 points to 6,418.69, up 0.93 percent.
The broader All Shares rose 26.86 points or 0.72 percent to 3,746.12.
Gainers outnumbered losers 97 to 95, with 46 stocks unchanged. Trading turnover reached P6.15 billion.
“This morning, the April inflation print came in at 1.4 percent, the lowest in over 5 years, as oil and food prices continued to moderate,” Luis Limlingan, managing director at Regina Capital and Development Corp., said.
The slower inflation also helped the stock market to buck the overnight decline on Wall Street, he said.
The online stock trading platform Philstocks Financial Inc. said the low inflation figure “gives the Bangko Sentral ng Pilipinas (BSP) more room to ease its policy.”
SB Equities Inc., said the sub-two percent April inflation is likely to encourage the BSP to cut its policy rate by another 25 basis points to 5.25 percent when it meets by June this year, noting that even BSP Governor Eli Remolona is saying a below-2 percent inflation print gives the Central Bank “a lot of policy space.”
Most actively traded International Container Terminal Services Inc. gained P21.60 to P375. Bloomberry Resorts Corp. closed up P0.38 at P4.19. BDO Unibank Inc. lost P0.90 to P157.50. Ayala Land Inc. shed P0.15 to P24.30. Universal Robina Corp. rose P0.55 to P86.20. SM Prime Holdings Inc. added P0.15 to P24.20. Bank of the Philippine Islands dropped P1 to P140. Metropolitan Bank and Trust Co. shed P0.30 to P76.10. DigiPlus Interactive Corp. closed up P0.20 to P41.70. Globe Telecom Inc. climbed P53 to P1,996.
