Stocks rise on bargain hunting, US inflation data

Philippine stocks recovered on Thursday on bargain hunting following their two-day drop and with data showing slower US consumer inflation in February.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.75% or 46.81 points to 6,242.07, while the broader all shares index climbed by 0.53% or 19.6 points to 3,701.4.

“The local market bounced back this Thursday as investors hunted for bargains following two straight days of decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Helping in today’s rebound are the lower-than-expected February inflation in the US and the robust fourth quarter and full-year 2024 corporate results onshore.”

“Philippine investors resumed their bargain hunting after investors calmed down after the latest US consumer price index (CPI) came out. Wall Street was able to even close mixed after a rough start,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war, Reuters reported.

The CPI rose 0.2% last month, the smallest gain since October, after accelerating 0.5% in January, the Labor Department’s Bureau of Labor Statistics said.

In the 12 months through February, the CPI increased 2.8% after climbing 3% in January. Economists polled by Reuters had forecast the CPI would gain 0.3% and advance 2.9% on a year-on-year basis.

With the economic outlook deteriorating because of tariffs, financial markets expect the Fed to resume cutting rates in June after it paused its easing cycle in January. The central bank’s benchmark overnight interest rate is currently in the 4.25%-4.5% range, having been reduced by 100 basis points since September.

Majority of sectoral indices posted gains on Thursday. Mining and oil surged by 2.97% or 257.66 points to 8,926.71; financials rose by 2.4% or 56.47 points to 2,401.53; services went up by 1.71% or 34.41 points to 2,040.47; and holding firms increased by 0.4% or 20.87 points to 5,223.56.

Meanwhile, property dropped by 1.54% or 34.56 points to 2,196.74 and industrials went down by 0.72% or 63.31 points to 8,667.55.

“BDO Unibank, Inc. was the day’s index leader, climbing 3.95% to PHP 158. Alliance Global Group, Inc. was at the bottom, falling 3.23% to PHP 6.30,” Mr. Tantiangco said.

Value turnover went down to P5.65 billion on Thursday with 1.04 billion shares exchanged from the PHP 5.98 billion with 741.54 million issues traded on Wednesday.

Decliners narrowly beat advancers, 93 versus 90, while 45 names were unchanged.

Net foreign buying increased to PHP 436.10 million on Thursday from PHP 2.62 million on Wednesday. — Revin Mikhael D. Ochave with Reuters