Stocks climb ahead of January inflation

MANILA, Philippines — The stock market started the week on a positive note as the main index stayed above the 6,700 level ahead of today’s January inflation report.

The benchmark Philippine Stock Exchange index or PSEi yesterday climbed by 0.31 percent or 20.97 points to close at 6,728.22.

The broader All Shares index likewise finished in the green, settling at 3,525.14, up 0.24 percent or 8.32 points.

“Philippine shares were bought up to start the week as investors brace for a fresh batch of economic data, followed by earnings releases. Philippine January CPI (consumer price index) will be released (today) with many expecting this to further moderate from the previous month,” Luis Limlingan of Regina Capital said.

Claire Alviar of Philstocks Financial said investors expect January inflation to slow down compared to the prior month and the same month in 2023, boosting investor sentiment yesterday.

“Moreover, the performance of the US markets last Friday amid the good earnings report helped in lifting the market,” she said.

Despite the market’s positive finish, however, Alviar said market participation was weak, as net value turnover stood at only P3.87 billion.

Market breadth was negative as decliners crushed advancers, 101 to 81, while 52 issues were unchanged.

Limlingan said key economic data releases in the US which investors are keeping an eye on this week are the January ISM Services PMI and December balance of trade.

He said there are also few speaking engagements from the Fed throughout the week.

“Here at home, the other main events are the unemployment rate, industrial production, and FDI which are also due to be released this week,” Limlingan said.