Low January inflation boosts local shares, peso recovers

By Kris Crismundo

February 6, 2024, 5:00 pm

MANILA – The significant drop in last month’s inflation rate has boosted investors to buy local shares, while the peso recovered from depreciation during the trading day.

The Philippine Stock Exchange index (PSEi) rallied for the third day, increasing by 27.04 points to 6,755.26 as All Shares rose 13.91 points to 3,539.05.

“Investors cheered the inflation data for January, which came in at 2.8 percent. The said data settled at the lower end of the Bangko Sentral ng Pilipinas’ inflation projection for the month. It was also the second straight month wherein inflation fell within the government’s target range of 2 (percent) to 4 percent,” Philstocks Financial, Inc. research and engagement officer Mikhail Plopenio said Tuesday.

Plopenio added that the Moody’s Analytics report that the Philippine economy is expected to perform better in the second semester of the year amid cooling inflation and interest rates would also boost investor sentiments.

Except for Financials, which slipped by 9.05 points, all counters closed in the green territory.

Gainers were led by Holding Firms, up by 39.38 points; followed by Mining and Oil, up by 32.14 points; Industrial, up by 22.05 points; Property, up by 20.75 points; and Services, up by 19.27 points.

“Net market value turnover for today improved to PHP4.61 billion, higher than the year-to-date average of PHP4.47 billion. Foreigners were net buyers with net inflows amounting to PHP44.45 million,” Plopenio said.

Advancers and decliners were equal at 93, while 57 firms were left unchanged.

Meanwhile, the Philippine peso closed the day at 56.20 to the US dollar from last trading’s finish of 56.29.

This is despite the peso opening weaker at 56.39 to the greenback, compared to the previous day’s 56.10.

The currency pair traded at a low of 56.14 and a high of 56.39, bringing the average level for the day to 56.26.

Volume of trade improved to USD1.26 billion from USD1.08 billion. (PNA)