Inflation report brings cheers to PHL shares, lifts PSEi over 4,500

Slower-than-expected inflation in December cheered up Philippine shares Thursday and lifted the PSEi over the psychological resistance at 4,500.   Philippine headline inflation decelerated to 4.2 percent in December, from 4.8 in November, bringing the annual average for 2011to 4.8 percent, the National Statistics Office reported Thursday.   The market expected the inflation report to give the Bangko Sentral enough elbowroom for a more favorable monetary policy,  said Justino Calaycay Jr., a trader at Accord Capital Equities Corp.   The main Philippine Stock Exchange index gained 31.14 point or 0.69 percent to close at 4,518.91.   More than 6.709 billion shares worth P6.233 billion changed hands in the session.   The Philippine government’s objective is to spur economic growth through infrastructure development with its public-private partnership program, so it follows that it will also make capital available and accessible to investors, Calaycay said.   In technical terms, Thursday’s trading validated the fact that the market breached the 4,470-resistance level, he noted.   “I hope it will be able to hold at 4,500,” Calaycay said.   The market remains on alert for developments on the euro debt crisis, especially the credit rating the euro zone members will get.   “A downgrade can act as a catalyst for a down trend,” Calaycay noted.   “Right now, we are just trying to enjoy the cheers in the market,” bought by the inflation report, he added.   Winners led losers 115 to 64, and 29 issues traded unchanged in Thursday’s session. — TJD, GMA News