PSEi rebounds as investors digest inflation data

MANILA, Philippines — Share prices rebounded yesterday as investors digested news of the continued decline of domestic inflation in May, according to analysts.

The local stock market finished strong with the benchmark Philippine Stock Exchange Composite index (PSEi) closing 84.77 points or 1.31 points higher at 6,564.70.

Likewise, the broader All Shares index rose by 26.18 points or 0.75 percent to close at 3,495.65.

Juan Paolo Colet, managing director at China Bank Capital Corp., said the market rebounded as investors digested news of the continued deceleration of domestic inflation in May, settling at 6.1 percent compared to April’s 6.6 percent.

“Technically though, the index needs to overcome the 6,600 resistance to inspire a broader rally,” he said.

Total value turnover reached P4.144 billion. Market breadth was positive with 97 gainers and 79 losers while 44 issues were unchanged.

Regional markets swung yesterday as data showed ongoing weakness in China’s economy with speculation swirling that officials will unveil fresh stimulus measures, while investors held out hope the Federal Reserve will skip an interest rate hike this month.

Reports that US Secretary of State Antony Blinken will visit China provided optimism for a thawing of relations between the superpowers, but with a lackluster Wall Street performance and few catalysts to drive business, regional traders moved cautiously.

Meanwhile, a World Bank warning on the global economic outlook gave some food for thought as it lowered its growth expectations for next year.

Traders are keeping tabs on China, with reports saying authorities have asked the country’s biggest banks to lower their deposit rates in a bid to boost the economy as it struggles to recover from years of zero-COVID lockdowns.

Analysts said such a move could indicate the People’s Bank of China was considering an interest rate cut as soon as this month. – AFP