Following stronger-than-expected US jobs data and last-minute bargain hunting, PHILIPPINE STOCKS ended the day higher on Monday.
The broad all shares index increased by 11.02 points or 0.32 percent to 3,421.78 while the benchmark Philippine Stock Exchange index (PSEi) increased by 26.82 points or 0.42 percent to close at 6,388.64.
According to Regina Capital Development Corp. Head of Sales Luis A. Limlingan, “Philippine share started off in the green, tracking the positive start of Asia and the futures market, following the release of a stronger-than-expected jobs report.”
Due to last-minute bargain hunting, the local bourse increased by 26.82 points (0.42 percent) to 6,388.64. Additionally, the significant drop in oil prices expected tomorrow helped the stock exchange close in the black, according to Philstocks Financial, Inc. Research Analyst Claire T. Alviar in a Viber message.
“While waiting for the US inflation rate, the market mostly traded in the red due to a lack of positive catalysts. Investors have been keeping an eye on it as they try to predict whether the Federal Reserve will become more aggressive in trying to control inflation or will maintain its current stance, Ms. Alviar continued.
According to Reuters, the US Labor Department’s survey of businesses revealed that nonfarm payrolls rose by 372,000 jobs in the past month. More than 350,000 jobs were added for the fourth consecutive month, which brought employment to a level that was 524,000 below that of the pre-pandemic period.
In order to help keep inflation at its target level of 2 percent, the Fed wants to reduce the demand for labor. The Fed has increased its policy rate by 150 basis points since March, and the markets anticipate that it will announce a further 75-basis-point increase at its meeting later this month.
It is also believed that the inflation data for June, which is due on July 13 and is anticipated to show a rise in consumer prices, will give decision-makers more cover to increase borrowing costs.
With the exception of mining and oil, which decreased by 59.38 points or 0.53 percent to close at 10,990.97 and holding firms, which decreased by 4.20 points or 0.07 percent to 6,032.61 at home, most sectoral indices showed gains.
While this was happening, the financial index rose by 13.12 points, or 0.87 percent, to 1,514.71; services rose by 13.89 points, or 0.83 percent, to 1,685.72; the industrial index rose by 27.80 points, or 0.29 percent, to 9,342.61; and the property index rose by 5.53 points, or 0.19 percent, to finish at 2,883.46.
Value turnover decreased from P6.60 billion with 538.26 million issues seen the previous trading day to P3.75 billion on Monday with 775.46 million shares changing hands.
101 declined compared to 82 advanced names, and 45 names closed unchanged.
On Monday, net foreign sales decreased to P98.20 million from P123.42 million the previous trading day.