Stocks rise for 3rd day

MANILA, Philippines — Share prices climbed anew yesterday amid a scorching inflation report as investors continued to bank on hopes for China’s emergence from the COVID-19 pandemic.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,761.33, up 42.83 points or 0.64 percent.

Likewise, the broader All Shares index rose 13.38 points or 0.38 percent to end at 3,550.45.

Total value turnover stood at P6.9 billion. Market breadth was positive, 93 to 84, while 53 issues were unchanged.

Eagle Equities president Joey Roxas said investors “don’t really focus on Philippine inflation and are instead keeping a closer watch on US inflation, as the Federal Reserve’s rate cuts influence the corresponding rate cuts by local monetary authorities.”

At the same time, he said in yesterday’s session, there was some profit taking as investors were mostly in and out of the market, investing only for the short term.

The Philippine Statistics Authority reported that inflation hit a 14-year high of 8.1 percent in December, prompting the central bank to say it was ready to take further policy action to tackle inflation.

“It seems the market is anticipating a stronger-than-expected 4Q GDP print ... outweighing the fact that more rate hikes may be needed in the coming months to help rein in inflation,” said Carlo Asuncion, chief economist at Union Bank of the Philippines.

In Asia, stocks scaled four-month highs on hopes for China’s emergence from the pandemic, while the dollar found support after analysts spotted a warning against betting too heavily on rate cuts this year in minutes from the last Federal Reserve policy meeting.

“China reopening has a big impact...worldwide,” said Joanne Goh, an investment strategist at DBS Bank in Singapore, since it not only spurs tourism and consumption but can ease some of the supply-chain crunches seen during 2022.

China’s central bank also said overnight it would step up financing support to spur domestic consumption and key investment projects and support a stable real estate market.

Asia’s optimism comes while minutes from the Federal Reserve’s December meeting, published on Wednesday, contained a caution against late-year rate cuts traders have priced in.