Manila: Both the Philippine Stock Exchange index (PSEi) and the peso recovered Thursday, partly after the Philippine Statistics Authority (PSA) reported the rise of the January domestic inflation rate to within-target level. Government data released during the day showed the rate of price increases in January accelerated from 1.8 percent last December to 2 percent, the lower end of the government's 2 percent to 4 percent target band for this and next year.
According to Philippines News Agency, this boosted market sentiments and allowed the local bourse's main index to rise by 0.14 percent to 6,382.04 points, and the broader All Shares by 0.92 percent to 3,587.83 points. Half of the sectoral indices also gained during the day - Services, 0.57 percent; Holding Firms, 0.47 percent; and Property, 0.18 percent. On the other hand, Mining and Oil shed 1.09 percent; Industrial, 0.38 percent; and Financials, 0.23 percent. Volume reached 1.1 billion shares, amounting to PHP6.7 billion. Advancers led decliners at 98 to 90, while 73 shares were unchanged.
The local market rose as investors appreciated the Philippines' January inflation rate, which came in at 2 percent, showing that consumer price increase in the country remain controlled, Philstocks Financial, Inc. said in a market report. The local currency ended the day at 58.69 to the US dollar, an improvement from its 58.97 close on Wednesday. The peso opened the day flat at 58.95 and traded between 58.95 and 58.69. The day's average stood at 58.82. Volume inched up to USD1.44 billion from the previous day's USD1.21 billion.
The local stock market's strong performance this week signals renewed investor confidence, according to Federation of Philippine Industries chairman emeritus Dr. Jesus Arranza. Arranza said the rebound of the main index is partly due to President Ferdinand R. Marcos Jr.'s calm and focused leadership despite uncertainties surrounding the flood-control issue. 'President Marcos is doing the right thing by staying focused on the work.. His calm, steady demeanor signals that he's in control and well on top of the situation, and markets respond to that kind of leadership. Calmness begets calmness,' he said. He added that the PSEi's rebound shows confidence is returning and fundamentals are reasserting themselves, urging the business community to keep building, investing, and contributing to economic growth.
