Price index levels off, boosts bourse
Latest inflation print also settled at the midpoint of Bangko Sentral ng Pilipinas’ range projection of 5.9 to 6.7 percent
Daily TribuneLatest inflation print also settled at the midpoint of Bangko Sentral ng Pilipinas’ range projection of 5.9 to 6.7 percent
Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, announced a small production cut for October to bolster oil prices that have recently slid over recession fears. The oil alliance decided to cut production by 100,000 barrels per day in October from its September level. | Wang Zhou/Xinhua
The local market performed better on Tuesday after shares climbed by 33.56 points or 0.50 percent to 6,709.60 amid investors' optimism on the August inflation data, which slowed down to 6.4 percent against the previous month's reading.
"The latest inflation print also settled at the midpoint of Bangko Sentral ng Pilipinas' range projection of 5.9 to 6.7 percent. The improved oil prices also contributed to the positive sentiment," Philstocks Financial Inc. researcher Mikhail Plopenio said.
"However, downside risks including the peso's depreciation and the Federal Reserve's hawkish outlook kept many investors on the sidelines," he added.
Meanwhile, Luis Limlingan, Head of Sales at the Regina Capital Development Corp., pointed out that investors are still looking ahead to speeches from Federal Reserve presidents and a fresh rate hike decision due later this week.
Trading remained dull
Upon closing on Tuesday, trading remained dull, with net value turnover posting P4.53 billion — still way lower than the year-to-date average of P6.25 billion
The miners led the rise for the sectors after it advanced by 2.49 percent. The industrials, however, were at the bottom, which dropped 0.44 percent. Gainers edged decliners by 95 to 89.
Aboitiz Equity Ventures Inc. was the top index gainer, climbing 3.36 percent to P59.95. BDO Unibank Inc. was at the tail end, plunging 1.54 percent to P128.
Relatedly, oil prices hiked Monday on bets that OPEC producers will tweak production and support prices during its meeting.
Brent crude went up by 1.5 percent to $94.45 per barrel. On the other hand, the US West Texas Intermediate crude futures settled at $88.12/bbl, up by 1.4 percent.
