PSE index ends higher on strong US jobs report

REUTERS/Eloisa Lopez

PHILIPPINE STOCKS closed higher than expected on Monday after US jobs data and last minute bargain hunting.

The benchmark Philippine Stock Exchange (PSEi) index rose 26.82 points, or 0.42%, to close at 6,388.64 on Monday, while the broader all-shares index rose 11.02 points, or 0.32%, to 3,421.78 climbed.

“Philippine stock started in the green, following the upbeat start of Asia and the futures market after the release of a stronger-than-expected jobs report,” said Luis A. Limlingan, director of sales at Regina Capital Development Corp., in a Viber message.

“The local bourse gained 26.82 points (0.42%) to 6,388.64 on last minute bargain hunting. Also, tomorrow’s big drop in oil prices helped the stock market end in the green,” Claire T. Alviar, research analyst at Philstocks Financial, Inc., said in a Viber message.

“The market traded mostly in the red due to a lack of positive catalysts while awaiting the US inflation rate. It has been watched by investors as it determines whether the Federal Reserve will act more aggressively to tame inflation or maintain its current stance,” Ms Alviar added.

The US Labor Department’s survey of establishments found nonfarm payrolls rose by 372,000 jobs last month, Reuters reported. It was the fourth consecutive month that more than 350,000 jobs were added and employment fell 524,000 jobs below pre-pandemic levels.

The Fed wants to dampen labor demand to bring inflation down to its 2% target. Markets are expecting the Fed, which has hiked interest rates by 150 basis points since March, to announce another hike of 75 basis points at its meeting later this month.

June inflation data, due July 13, which is expected to show a rise in consumer prices, appears to give policymakers more cover to continue raising borrowing costs.

At home, most sector indices posted gains except mining and oil, which fell 59.38 points or 0.53% to close at 10,990.97, and holding companies, which fell 4.20 points or 0.07% to 6,032 .61 declined.

Meanwhile, financials rose 13.12 points, or 0.87%, to 1,514.71; Services rose 13.89 points, or 0.83%, to 1,685.72; Industrials rose 27.80 points, or 0.29%, to 9,342.61; and real estate rose 5.53 points, or 0.19%, to end at 2,883.46.

Value turnover fell to P3.75 billion on Monday, with 775.46 million shares changing hands, from P6.60 billion with 538.26 million issues the previous trading day.

There were more relegations than risers, 101 versus 82, while 45 names closed unchanged.

Overseas net sales fell to P98.20 million on Monday, compared to P123.42 million the previous trading day.

Mercantile Securities Corp. chief trader Jeff Radley C. See said net overseas sales could continue amid fears of a global slowdown on Tuesday. He said PSEi could rally again to 6,500 on Tuesday. — JIDP. tabel With Reuters

About Katie Curtis

Check Also

BSP braces for another jumbo rate hike to keep up with aggressive Fed

Ramon Royandoyan – November 3, 2022 | 10:42 a.m MANILA, Philippines – The Bangko …