LOCAL stocks ended Friday marginally higher on bargain hunting as investors weighed the impact of the latest MSCI rebalancing and amid easing concerns about the US economy following the release of positive economic data.
The benchmark Philippine Stock Exchange index added 5.99 points, or 0.09 percent, to 6,897.54.
The equities market failed to retake the 6,900-point resistance level, which was breached last week, ending the current trading week down 64.42 points compared to last Thursday’s close of 6,961.96. Friday last week was declared a nonworking holiday.
The broader All Shares index rose 9.52 points, or 0.26 percent, to 3,742.81.
“The local market rose this Friday, after its two-day decline, on the back of bargain hunting,” said Japhet Tantiangco, senior research analyst at Philstocks Financial Inc.
“Easing recession concerns in the US brought [about] by the decline in their initial jobless claims and their upwardly revised second-quarter GDP (gross domestic product) growth data gave the local market a boost,” he added.
Gains were trimmed, however, “as investors maintained a cautious stance while waiting for [other] catalysts,” Tantiangco continued.
For his part, Regina Capital Development Corp. Managing Director Luis Limlingan said the stock market moved slightly higher to close just a few points shy of the 6,900-mark as investors “took into account the latest MSCI rebalancing.”
“Direction from abroad was muted, with US stocks closing mixed despite a sharp pullback late in the afternoon session, as traders await the Federal Reserve’s favored PCE (Personal Consumption Expenditures price index) inflation gauge due Friday ahead of the long Labor Day weekend,” he added.
Limlingan noted that US real GDP growth for the second quarter was revised up 0.2 percentage point to plus 3.0 percent, annualized, which was “above expectations and reflecting an upward revision to consumption growth, partially offset by a downward revision to business fixed investment growth.”
Sectors were mixed, with properties taking the lead, up by 1.89 percent, while services were the biggest losers, down 0.92 percent.
Gainers outnumbered decliners, 104 against 88, while 56 stocks were unchanged.
Peso up at P56.11
Meanwhile, the local currency ended the week stronger against the greenback on Friday.
The peso closed at P56.111, up 18 centavos from the previous close of P56.283, data from the Bankers Association of the Philippines showed.
It opened trading at P56.20:$1 and ranged between P56.111 and P56.25 to the dollar. Volume reached P1.235 billion, lower than the P1.567 billion recorded in the previous session.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the peso strengthened following reports that the Bangko Sentral ng Pilipinas expects inflation to slow in August to within a range of 3.2 to 4.0 percent, slower than the 4.4-percent rate seen in July this year.
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