Philippine stocks rose Monday ahead of the release of January inflation which is expected to be slower than 3.9 percent in December.
The bellwether Philippine Stock Exchange index added 20.97 points, or 0.31 percent, to close at 6,728.22, while the broader all-shares index climbed 8.32 points, or 0.24 percent, to finish at 3,525.12.
“The Philippine shares were bought up to start the week as investors brace for a fresh batch of economic data, followed by earnings releases. Tomorrow, the Philippine January inflation will be released, with many expecting this to further moderate from the previous month,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Total value turnover reached P3.86 billion.
Economists expect inflation to settle within the target range of 2 percent to 4 percent.
“While we are mindful of inflation risk, particularly with rising rice prices, we expect the inflation rate in first quarter to benefit from base effects and to print around 3 percent to 4 percent,” said Jean de Castro, head of fixed income at Manulife Investment Management and Trust Corp.
Castro said while the tight monetary policy, base effects and the government’s tariff extension under Executive Order 50 should keep inflation within BSP’s target range in the quarter, upside risks include rising global oil and rice prices and the effect of increases in minimum wage implemented last year.