Inflation seen dropping in January – FMIC/UA&P

MANILA, Philippines — Inflation will likely start to fall this month, with crude prices back to pre-Russia-Ukraine war, according to the latest issue of The Market Call.

This bodes well for the local equities market, according to The Market Call, a joint publication by First Metro Investment Corp. and the University of Asia & the Pacific.

Inflation hit eight percent in November from 7.7 percent in October.

“We think inflation will start to fall by January 2023, with crude oil prices back to pre-Russia-Ukraine war levels and food supply chains on the mend. Robust domestic demand, especially consumption and infrastructure spending, should keep the economy humming while corporate profits continue to improve,” according to The Market Call.

The Philippine Stock Exchange Composite index (PSEi) recorded the second highest gain in share prices in November as it went up 10.2 percent month-on-month from a 7.2 percent increase in October.

In terms of volume, the PSEi’s trading volume increased by 11.3 percent in November from the previous month’s 46.9 percent plunge.

Among the different sectoral gauges, four sectors landed on the green. These are the financial, industrial, holdings and mining and oil. The financial sector posted the largest volume increase of 58.1 percent.

Two sectors posted a decline – property and services, with the latter diving deepest with a 16.8 percent drop.

Foreigners returned to the market and took profits in the last three trading days of November, but still ended in a net buying position to the tune of P6.9 billion during the month.

This was from a net selling of P700 million a month earlier.

Among the different companies, banks and conglomerates were the favorite of foreign funds.

The top five favorite stocks of foreign investors in November were Sy-led BDO Unibank Inc. (P3.1 billion), Ayala Land  (P1.6 billion), SM Investments Corp. (P1.4 billion), Jollibee Foods Corp. (P1.3 billion) and Ty-led Metrobank (P1.1 billion), for a total of P8.5 billion.

On the other hand, the top five most sold stocks in November were Pangilinan-led Metro Pacific Investments Corp. with a foreign sale of P2 billion; GT Capital, P1.9 billion; Manila Electric Co., P707 million; ICTSI, P575.6 million, and Ayala Corp., P384.8 million.