Stocks rally anew on easing March inflation data

MANILA, Philippines — Stocks rallied for a second consecutive day yesterday, with the positive mood evident early on and did not wane until the close of trading.

The benchmark Philippine Stock Exchange index or PSEi finished at 6,590.11, gaining 94.96 points or 1.46 percent.

The PSEi opened past the 6,500 level anew and did not give up gains until the end of session.

Likewise, the broader All Shares gauge added 55.54 points or 1.41 percent to close at 4,003.00.

Total value turnover remained thin at P5.849 billion, but market breadth was highly positive with 159 advancers to 61 decliners while 39 issues were unchanged.

Traders attributed the upbeat sentiment mostly on news that inflation came in slower than expected in March.

The Philippine Statistics Authority reported yesterday that headline inflation eased to 4.5 percent in March following five consecutive months on the uptrend.

The latest headline number was still within the 4.2 to five percent forecast by the Bangko Sentral ng Pilipinas (BSP) for March.

“The local market surged as inflation came in slower than expected for March at 4.5 percent versus the estimate of 4.9 percent. It’s also the first time inflation slowed month on month in six months, “AB Capital Securities said in a market report.

Traders said investors may also be changing positions and looking for some bargains given the shortened trading week due to the upcoming holiday on Friday, April 9 or Day of Valor.

Around Asia, meanwhile, shares were mixed after a Wall Street rally that reflected some optimism about the economy recovering from the pandemic.