PSEi inches higher following Wall Street’s rally

PSEi inches higher following Wall Street’s rally

PHILIPPINE STOCKS closed higher on Monday to track Wall Street’s rally on Friday as data showing a slowdown in consumer and producer prices in July boosted hopes that US inflation has peaked.

The bellwether Philippine Stock Exchange index (PSEi) went up by 38.18 points or 0.57% to close at 6,737.84 on Monday, while the broader all shares index increased by 16.71 points or 0.46% to 3,580.87.

“Following the US rally on Friday, Philippine shares rose once again, starting another positive week as investors celebrated signs that inflation may be peaking,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Limlingan said the market is awaiting more US data due to be released this week, including reports on jobs, housing and retail sales.

“The local bourse started the week positively… as bullish sentiment persists,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“As the market breached and managed to stay above the 6,600 levels, some investors are accumulating at that level, especially those undervalued stocks with good earnings in the first semester,” Ms. Alviar added.

Wall Street rose on Friday as data showing slower US consumer and producer inflation boosted market sentiment as this could mean aggressive hikes from the Federal Reserve.

The Dow Jones Industrial Average rose 424.38 points or 1.27% to 33,761.05; the S&P 500 went up 72.88 points or 1.73% to 4,280.15; and the Nasdaq Composite climbed 267.27 points or 2.09% to 13,047.19.

The US consumer price index rose by 8.5% annually in July, slower than 9.1% in June.

Meanwhile, the producer price index for final demand increased 9.8% annually in July after rising 11.3% in June.

Back home, the majority of the sectoral indices ended in the green on Monday except for services, which went down by 11.78 points or 0.67% to 1,740.53; and industrials, which dropped by 1.29 points or 0.01% to 9,897.59.

Meanwhile, holding firms surged by 108.01 points or 1.68% to 6,512.40; mining and oil climbed by 127.65 points or 1.09% to 11,821.01; financials went up by 6.61 points or 0.42% to 1,566.60; and property rose by 10.95% or 0.36% to 3,052.95.

Advancers outnumbered decliners, 101 versus 89, while 48 names closed unchanged.

Value turnover declined to P5.49 billion on Monday with 1.03 billion shares changing hands from P13.76 billion with 1.67 billion issues seen on Friday.

Foreigners turned net buyers, logging P360.11 million in net purchases on Monday from the P5.86 billion in net selling seen the previous trading day.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the market “may continue to move upward after the US market sustained its upward momentum last Friday.”

He placed the PSEi’s immediate support at 6,500 and resistance at 6,800. — JIDT

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