PSEi leads Asia gains as inflation on target

MANILA, Philippines — The Philippine stock market outperformed its peers in Asia as investors digested the January inflation report.

The benchmark Philippine Stock Exchange (PSEi) rose by  125.95 points, or 1.74 percent, to finish at 7,352.85.

Likewise, the broader All Shares index rose 60.36 points, or 1.40 percent, to end at 4,354.25.

All indexes finished in positive territory, resulting in a green day for the stock market yesterday.

Total value turnover reached P9 billion. Market breath was positive with 110 gainers and 74 losers, while 48 issues were left unchanged.

Traders said investors are digesting the latest inflation data which although higher– than–expected was not too far off the mark.

The country’s headline inflation accelerated to 2.9 percent in January 2020 from 2.5 percent in the preceding month. Inflation in January 2019 was 4.4 percent.

The Bangko Sentral ng Pilipinas projects inflation to settle at 2.9 percent in 2020 and 2021, within the government’s target range of two to four percent.

Socioeconomic Planning Secretary Ernesto Pernia  said the inflation outlook is relatively stable but noted that the balance of risks remains on the upside for 2020 due to the effects of the Taal Volcano eruption, spread of African swine fever, and novel coronavirus.

J.P. Morgan said inflation would likely continue to trend higher in the coming months.

Investors are also waiting the decision of the Bangko Sentral ng Pilipinas (BSP) today.

J.P. Morgan said the potential macroeconomic impact of the current 2019-nCov outbreak on the Philippine economy could magnify the lingering downside risk to growth emanating from the lackluster capex outlook.

“Thus we expect a 25 basis points policy easing at tomorrow’s monetary board meeting,” it said.