A screenshot shows inflation trends over the decades. The Philippine Statistics Authority reported Friday that Inflation inched up to 6.7% in September. (Photo:CTTO)
Despite the inflation report released by the Philippine governments economic managers, the Philippine Peso ended the week higher against US Dollar but the main equities gauge fell modestly.
The local currency finished stronger at 54.23 from 54.32 a day ago, which a trader says is due to a below than expected September inflation rate at 6.7 percent.
It will be recalled that the BSP earlier predicted a 6.8% inflation rate, and some economists predicted a 7% inflation rate owing to the effects of the recent Typhoon Ompong on food supplies, prices of which rose in the last month.
Data released by the Philippine Statistics Authority (PSA) on Friday showed that the September 2018 inflation rate is higher than the 6.4 percent last August, bringing the average to date to 5 percent, higher than the government’s 2 percent to 4 percent target until 2020.
The trader said concerns on the trade war between the US and China continue to concern investors thus, some risk-off sentiment.
The Peso opened the day at 54.3 and traded between its closing level and 54.33. Average for the day stood at 54.281.
Volume reached USD592.5 million, lower than the USD893.1 million a day ago.
The currency pair is seen to trade between 54.20 and 54.40 next week.
On the other hand, the Philippine Stock Exchange index (PSEi) shed 0.21 percent, or 15.14 points, to 7,078.20 points.
Landbank market economist Guian Dumalagan said the uptick in inflation last September from the previous month’s 6.4 percent is a “non-event” in the local equities market during the day since this is lower than the 6.8 percent consensus forecast.
“Investors are now in a wait-and-see mode as they need another cue to make sure that (the) CPI (consumer price index) has started to peak,” he said.
All shares are also down at 4,363.36 points, a decline of 0.16 percent or 6.98 points from the previous session.
Most of the sectoral indices ended on the red with Holding Firms registering the highest decline at 0.66 percent, followed by Industrial, 0.53 percent; Mining and Oil, 0.41 percent; and Financials, 0.33 percent.
On the other hand, Property rose by 0.64 percent and Services, 0.21 percent.
Volume reached 1.13 billion shares amounting to PHP4.08 billion.
Losers led gainers at 129 to 66 while 40 stocks were unchanged. (With reports from PNA)