EconomyEditor's PickStocks up on inflation data, looser protocols

November 5, 2021

PHILIPPINE shares ended higher on Friday as investors reacted to the easing of the country’s inflation rate and the further easing of quarantine restrictions in Metro Manila.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) increased 137.05 points or 1.9% to end at 7,340.77 while the broader all shares index climbed 53.84 points or 1.21% to close at 4,491.01.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message that stocks closed higher due to the country’s positive inflation figures.

“Philippine shares closed to a new year-to-date high as inflation came in better than expected and strong third-quarter earnings painted a rosier picture of the economy as the country continues to loosen restrictions caused by the pandemic,” Mr. Limlingan said.

“October consumer price index (CPI) continued to soften as key categories food and alcohol offset the acceleration in transport and fuel costs,” he added.

The Philippine Statistics Authority (PSA) announced on Friday that inflation in the country slowed to 4.6% year on year in October amid a slower increase in food prices.

The October inflation figure is lower compared with the 4.8% recorded in the previous month.

Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a mobile phone message that the market closed in green territory following the implementation of more relaxed quarantine restrictions in the National Capital Region (NCR) starting Nov. 5.

“The positive sentiment may also be brought about by investors assessing the continuous flow of corporate earnings results being released in the country,” Mr. Pangan said.

On Thursday, Presidential Spokesperson Herminio L. Roque, Jr. announced that NCR will be downgraded to Alert Level 2 from Nov. 5 to 21.

The announcement came after the Philippines recorded on Nov. 3 its lowest daily tally of coronavirus disease 2019 (COVID-19) cases, which reached 1,591.

On Friday, all of the sectoral indices at the local bourse closed higher.

Property gained 107.09 points or 3.3% to 3,349.33; services inched up 48.16 points or 2.53% to 1,951.91; financials rose 20.97 points or 1.32% to 1,600.58; holding firms went up 91.33 points or 1.29% to 7,149.91; industrials improved 51.51 points or 0.47% to 10,830.67; and mining and oil grew 41.91 points or 0.42% to 9,958.9.

Advancers bested decliners, 137 against 67, while 44 names ended unchanged.

Value turnover on Friday reached 9.42 billion with 1.4 billion shares exchanging hands, higher than the P7.68 billion with 4.69 billion shares logged the prior trading day.

Net foreign buying amounted to P695.24 million, higher than the P371.99 million worth of net purchases reported on Thursday.

“Amid the technical breakout from the 7,320-resistance area, we’ll have to see next week if this level holds. Next resistance may be placed at 7,870,” Mr. Pangan said. — Revin Mikhael D. Ochave

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