Stocks up on slower-than-expected Aug. inflation
PHILIPPINE SHARES recovered on Thursday following the release of data showing that headline inflation slowed more than expected last month.
The Philippine Stock Exchange (PSEi) index rose by 0.37% or 25.85 points to end at 6,907.97 on Thursday, while the broader all shares index climbed by 0.26% or 9.75 points to close at 3,739.27.
“The local market moved sideways as investors weighed the decline of the Philippines’ inflation last August against lingering concerns over the health of the US economy. In the end, the bourse was able to post gains,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Philippine shares overcame the negative price action overseas to finish higher… Investor sentiment got a boost as the latest August consumer price index data came in better than expected,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Philippine headline inflation eased to a seven-month low of 3.3% in August from 4.4% in July and 5.3% in the same month a year ago, the government reported on Thursday. This was within the central bank’s 3.2-4% forecast for the month and was well below the 3.7% median estimate in a BusinessWorld poll of 15 analysts conducted last week.
Meanwhile, US stocks finished slightly lower in choppy trading on Wednesday following labor market data and comments from a US Federal Reserve official that bolster the case for an interest rate cut, Reuters reported.
The Dow Jones Industrial Average rose 38.04 points or 0.093% to 40,974.97; the S&P 500 lost 8.86 points or 0.16% to 5,520.07; and the Nasdaq Composite lost 52 points or 0.3% to 17,084.30.
Labor department data showed that US job openings fell to a three-and-a-half-year low in July, indicating continued easing of labor market tightness that could strengthen the Fed’s hand to begin cutting rates at its next meeting later this month.
Raphael Bostic, Atlanta Fed president, said on Wednesday the central bank must not keep interest rates too high much longer or it risks causing too much harm to employment.
At home, sectoral indices were split. Services went up by 1.8% or 39.22 points to 2,208.57; industrials increased by 0.97% or 89.30 points to 9,249.42; and financials climbed by 0.71% or 15.23 points to 2,141.91.
Meanwhile, property fell by 1.23% or 34.40 points to 2,752.79; holding firms dropped by 0.35% or 20.14 points to 5,719.07; and mining and oil slid by 0.25% or 20.39 points to 8,018.51.
Value turnover declined to P5.07 billion on Thursday with 517.79 million shares changing hands from the P5.56 billion with 653.58 million issues traded on Wednesday.
Advancers edged out decliners, 96 versus 94, while 46 names closed unchanged.
Net foreign buying rose to P258.97 million on Thursday from P145.73 million on Wednesday. — Revin Mikhael D. Ochave