MANILA -- The sustained deceleration of the country's inflation rate, which last December further dropped to 5.1 percent from month-ago’s 6 percent, is seen to give the Philippine Stock Exchange index (PSEi) an upward boost this shortened trading week.
Average inflation in 2018 stood at 5.2 percent, in line with the expectations of the Bangko Sentral ng Pilipinas (BSP) but higher than the government’s 2 to 4 percent target band from 2018-2020.
At the end of Friday’s morning session, the main stocks gauge increased by 1.57 percent, or 120.90 points, to 7,801.50 points.
Regina Capital managing director Luis Limlingan told the Philippine News Agency (PNA) that “it seems” that the inflation report will be a big plus for the local equities during the day. “Yes, I think it will close upward,” he said.
PSEi started the year with gains amid concerns on the path of global growth, which has resulted in continued volatilities overseas.
Limlingan said risks on the PSEi continue to remain from the external side. “Growth outside slowing down and sentiment may drag us,” he added.
The main gauge ended 2018 at 7,466.02 points, down from the 7,482.66 points in the previous trading, which in turn was caused by the continued volatilities in global market.
Analysts expect the continued see-saw results of equities markets globally given the developments in major economies on trade and growth issues. (PNA)
