PSEI UP 0.50% ON LOWER INFLATION FIGURES

THE local bourse climbed by 33.56 points, or 6.3 percent, to close at 6,709.60 on Tuesday as investors digested the August inflation data, which slowed down at 6.3 percent from July’s 6.4 percent.

“The latest inflation print also settled at the midpoint of Bangko Sentral ng Pilipinas’ range projection of 5.9 percent to 6.7 percent,” Philstocks Financial Inc. researcher Mikhail Plopenio said.

Meanwhile, Regina Capital Development Corp. Managing Director

Luis Limlingan pointed out that investors are looking ahead to speeches from several Federal Reserve (Fed) presidents and a fresh rate hike decision from the Eastern Central Bank due out later this week.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., expounded that OPEC+ agreed to cut output by 100,000 barrels per day by October 2022, which might become a risk factor. Despite that, global crude oil prices still hovered among the lowest in the past six months. OPEC is the Organization of the Petroleum Exporting Countries.

However, Brent crude went up by 1.5 percent to $94.45 per barrel. While US West Texas Intermediate crude futures settled at $88.12 per barrel, up by 1.4 percent on news of the production cut by OPEC+.

Downside risks, including the peso’s depreciation which is now at the P57.00 level and the Fed’s continuing hawkish outlook, still kept investors on the sidelines.

As a result, Tuesday’s trading remained tepid with net value turnover posting P4.52 billion, still below the year-to-date average of P6.25 billion.

Tuesday’s total volume was at 532,427,870 shares, with 59,193 trades made.

Mining and oil led the rise for the sectors, advancing 2.49 percent. The industrials were at the bottom, dropping 0.44 percent.

Advancers edged decliners, 95 to 89, while 50 securities remained unchanged.