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Business

Better than expected inflation rate, firmer peso boost stocks 16 pts

- Christina Mendez, Conrado Diaz Jr. -
Share prices broke out from a near-record slump as investors cheered the release of better than expected inflation figures to go along with a firmer peso by midday.

The main index advanced steadily throughout the entire session, ending 16.41 points or 1.2 percent higher to 1,389.11. The broader All-Shares index followed suit with a 1.81-percent jump to 675.21.

It was a complete turnaround from the past three trading days as the major counters trooped toward the plus side, except for the mining sector which stood on firm ground. Analysts have conceded stocks have been nearing rock bottom after a rabid downswing to a two-year-low, hence inducing a rally anchored on a technical buying spree.

Advancing stocks this time outpaced decliners two to one, or 50 against 24, while 28 issues were unchanged. Value turnover, sloped back down to P787.58 million from over P1.2 billion the previous day.

The National Statistics Office reported that inflation – the measure of the rise in the prices of basic goods – stabilized at 4.6 percent in September, lower than the 4.9 percent anticipated by most economists and an improvement from the 5.7-percent rate a year earlier.

Philippine National Bank led trades with over 13 percent of total deals, surging ahead by P5.50 to settle at P42.50. It was one of the top gaining stocks for the day.

Meralco B was the second most active issue, closing at a steady P48.50. The country’s largest power distributor said it was in talks with the state-owned Natonal Power Corp. to resolve the dispute on transmission constraints in the hope of ensuring that electricity consumers are not made to absorb unnecessary costs.

Napocor is billing Meralco P1.347 billion in underpayments from June to September this year although the latter is contesting this, saying Napocor failed to transmit generated power in full causing Meralco to cover up the deficiencies.

PLDT was relegated to third place in the heaviest traded list, accelerating P5 to P785. The telecom giant said it has signed a memorandum of understanding with leading financial conglomerate the Philam Group for a number of product initiatives that will be announced later this year.

Other advancing blue chips were Metrobank, up P1 to P167; BPI, also P1 higher to P52; Petron Corp., adding six centavos to P1.12; SM Prime, 15 centavos more to P4.60; Benpres Holdings, up a similar 15 centavos to P3.45; and Ayala Corp., plus 10 centavos to P6.60.

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ALL-SHARES

AYALA CORP

BENPRES HOLDINGS

MERALCO

MERALCO B

NAPOCOR

NATIONAL STATISTICS OFFICE

NATONAL POWER CORP

PETRON CORP

PHILAM GROUP

PHILIPPINE NATIONAL BANK

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