October 8, 2024 | 12:00am
MANILA, Philippines — The local stock market started the week on a high note, surging to its highest close in almost five years on the back of encouraging economic data here and abroad.
The benchmark Philippine Stock Exchange index (PSEi) climbed by 1.16 percent or 86.76 points to finish at 7,554.68 yesterday.
The broader All Shares index also gained by 1.02 percent or 41.32 points to end at 4,082.97.
AB Capital Securities Inc. vice president Jovis Vistan said the local bourse breached the critical 7,500 resistance level as investors cheered the stronger-than-expected jobs data in the US and the inflation slowdown on the domestic front.
“The robust employment figures alleviated concerns about a potential recession in the world’s largest economy, providing a favorable backdrop for global equity,” Vistan said.
Inflation in the Philippines eased to 1.9 percent in September, its lowest level since May 2020, from 3.3 percent in August.
“This development stoked optimism that the central bank may continue to adopt a more accommodating monetary policy stance. The sustained decline in inflation raises expectations that further easing in interest rates could support higher corporate earnings and boost consumer spending,” Vistan said.
Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, said the PSEi’s recent gains were also supported by consistent net foreign buying for almost all trading days since August.
“The underlying upward trend for two months already remains intact for as long as it remains above the immediate support at 6,810–6,935,” Ricafort added.
Trading was quite strong, resulting in a net market value turnover of P7.6 billion — higher than the year-to-date average of P5.21 billion. Foreigners were net buyers, posting a net inflow of P1.35 billion.
Among sector indices, the property index was the biggest winner with a 2.05-percent increase after being the main laggard last week.
Financials, meanwhile, lost the most, shedding by 0.46 percent.
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