Stocks bounce back as May inflation eases

MANILA, Philippines — The local stock market rebounded yesterday as investors welcomed the easing inflation in May.

The bellwether Philippine Stock Exchange index advanced by 0.45 percent or 26.45 points to cap off the week at 5,938.38.

The broader All Shares index likewise improved by 0.34 percent or 11.23 points, settling at 3,334.31.

AB Capital Securities said the index briefly reclaimed the 6,000 level, rising  as much as 1.5 percent intraday before paring gains into the close.

“The market outperformed regional peers, supported by a better-than-expected May CPI print of 6.8 percent (versus 7.9 percent consensus; 7.2 percent in April), reinforcing hopes that inflation may be nearing a peak,” AB Capital said.

“The peso also firmed to P61.5 as oil prices eased,” it said.

Data from the Bankers Association of the Philippines showed that the peso strengthened by 15.5 centavos to close at 61.47 to $1 yesterday from Thursday’s 61.625 to $1.

Sectoral gauges were mixed, with those in the green having the slight advantage. The industrial index posted the  largest increase at 0.68 percent, while mining and oil posted the biggest drop at 1.1 percent.

Total turnover value increased to P7.25 billion from the previous day’s P7 billion. Advancers edged out decliners, 97 to 84, while 55 issues were unchanged.

ICTSI was the top traded stock, climbing by 0.65 percent to P855 per share. It was followed by BDO Unibank, which declined by 0.76 percent to P118, and BPI, which rose by 1.88 percent, to P94.75.

ACEN was the session’s index leader, recording an 11.29-percent surge to P3.45 per share.