PHILIPPINE SHARES rose for the third straight session, with the main index logging its best close in over three weeks, as investors picked up cheap issues and amid expectations that headline inflation stayed within target last month.

The Philippine Stock Exchange index (PSEi) went up by 0.32% or 21.36 points to end at 6,625.17 on Monday, while the broader all shares index increased by 0.22% or 8.55 points to 3,794.03.

This was the PSEi’s highest close in more than three weeks or since it finished at 6,641.35 on Dec. 12.

“The local market extended its rise as investors continued with their bargain hunting,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Also aiding in Monday’s session is the investors’ optimistic expectations towards the Philippines’ December 2024 inflation rate,” he added.

A BusinessWorld poll of 13 analysts yielded a median estimate of 2.7% for the December consumer price index (CPI), within the Bangko Sentral ng Pilipinas’ (BSP) 2.3%-3.1% forecast for the month.

If realized, this would be faster than the 2.5% print in November and mark a third straight month of acceleration. Still, this would be slower than 3.9% in December 2023 and would be within the BSP’s 2-4% target.

The Philippine Statistics Authority will release December and full-year 2024 CPI data on Jan. 7 (Tuesday).

“Philippine investors continued to slowly reposition as the first full trading week of the year begins,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Limlingan said that aside from the inflation report, other trading drivers this week include US jobs data and minutes from the US Federal Reserve’s December meeting, as well as scheduled speaking engagements of some Fed officials that could give clues on the path of interest rates in the world’s largest economy.

Majority of sectoral indices closed lower on Monday. Holding firms dropped by 0.5% or 28.64 points to 5,648.25; mining and oil declined by 0.38% or 29.82 points to 7,708.32; industrials retreated by 0.11% or 10.38 points to 9,312.60; and property inched down by 0.01% or 0.44 point to 2,400.20.

Meanwhile, services climbed by 1.51% or 32.36 points to 2,163.81 and financials increased by 0.91% or 20.07 points to 2,226.57.

“Universal Robina Corp. was the day’s index leader, climbing 3.26% to P82.40. Wilcon Depot, Inc. was the main index laggard, falling 3.69% to P13.56,” Mr. Tantiangco said.

Value turnover rose to P3.86 billion on Monday with 4.54 billion shares changing hands from the P3.78 billion with 2.77 billion issues traded on Friday.

Advancers bested decliners, 112 versus 103, while 52 names were unchanged.

Net foreign buying stood at P40.94 million on Monday versus the P171.99 million in net selling recorded on Friday. — R.M.D. Ochave