Slower-than-expected September inflation buoys stocks

The Philippine Stock Exchange is located at Bonifacio Global City in Taguig, Metro Manila.

MANILA, Philippines — The stock market soared to a new high in more than two years as the country’s inflation dropped to over four-year low in September.

The benchmark Philippine Stock Exchange index (PSEi) surged by 1.07 percent or 79 points to close the week on a high note at 7,467.92.

This was the PSEi’s highest finish in nearly 32 months or since closing at 7,502.48 on February 9, 2022.

The broader All Shares index also finished the week strong, climbing by 1.48 percent or 58.99 points to 4,041.65.

“Shares were bought up toward closing as investors were positively surprised by the latest Philippine CPI print for September, which came in at just below two percent, giving the monetary authority greater control on when to relax interest rates,” Luis Limlingan of Regina Capital said.

The Philippine Statistics Authority) yesterday reported that inflation eased further to 1.9 percent in September from 3.3 percent in August. This was the lowest inflation print since the 1.6 percent recorded in May 2020 and slight below the two to 2.8 percent forecast of the Bangko Sentral ng Pilipinas.

Net value turnover stood at P5.92 billion, down from the previous day’s P7.07 billion.

Most sectors were in the green, led by the industrial index, which rose by 1.94 percent.

Property as well as mining and oil were the only counters in the red, declining by 1.02 percent and 0.75 percent, respectively.

Market breadth remained positive as advancers thrashed decliners, 107 to 87, while 52 issues were unchanged.

BDO was the top traded company, gaining 0.70 percent to P158 per share, followed by Ayala Land with a 1.6-percent decline to P37.

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