The local stock market barely moved Friday, (June 4) after the government’s announcement of the inflation rate for the month of May.
The main index inched up 4.47 points or 0.07 percent to close at 6,796.34 as sectoral indices were evenly mixed with Banks leading advancers and Mining stock dropping the most.
Volume was lower at 1.53 billion shares worth P5.92 billion as gainers beat losers 110 to 88 with 48 unchanged.
“Local shares closed little changed as investors digested the latest inflation print,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “The May headline inflation remained at 4.5 percent due to the mixed movement in commodity groups. The current inflation rate is significantly higher than May 2020's 2.1 percent and marks the third straight month that inflation stood at 4.5 percent.”
“Meanwhile, the BSP maintains its 2021E-2022E target inflation of 2-4 percent. Gov. Diokno noted that supply issues are already being addressed, and the arrival of pork imports would guide the pace of inflation decline. The risks to the inflation outlook are broadly balanced,” Limlingan said.
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse moved sidewaysas investors weighed May 2021’s inflation print against the country’s COVID-19 daily case counts which is regaining pace.“
He observed that, “In the end, the market closed up by 4.47 points on the back of a last minute bargain hunting. Foreigners were net buyers today with net inflows amounting to P1.07 billion.”