Connect with us

Hi, what are you looking for?

Economy

Stocks climb on positive sentiment, Fed bets

STOCKS climbed on Tuesday, snapping a three-day losing streak, as investors remained bullish on the Philippines’ prospects, even with inflation hitting a 14-year high last month and on expectations of smaller US Federal Reserve rate hikes.

The Philippine Stock Exchange index (PSEi) added 232.25 points or 3.6% to close at 6,674.38 on Tuesday, while the broader all shares index increased by 73.79 points or 2.16% to 3,477.72.

“A strong bounce by the PSE index today, signaling a shift in market sentiment from bearish to bullish, even if the inflation rate increased to 8%,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message on Tuesday.

Headline inflation stood at 8% in November, its quickest pace in 14 years. This was faster than the 7.7% in October and the 3.7% in the same month last year, and was also the quickest headline print since the 9.1% in November 2008.

For the first 11 months, inflation averaged 5.6% versus the 4% seen in the same period a year ago. This is still lower than the central bank’s full-year forecast of 5.8% but well above its 2-4% target for 2022.

“[There] were no concerns brought about by inflation hitting 8%, which was above the latest Bloomberg median estimate,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Investors shrugged off concerns that the Fed will need to hike interest rates for longer than previously anticipated with the intended goal of bringing down inflation following the better-than-expected November Institute for Supply Management services data… Although, the market still broadly expects the Fed to push the rates up again by 50 basis points at its December meeting,” Mr. Limlingan added.

US manufacturing activity increased to 61.1 in November following the 60.8 it posted in October, Reuters reported. A reading above 50 means expansion in the country’s manufacturing activity which accounts for 12% of the US economy.

Back home, all sectoral indices closed higher on Tuesday. Holding firms added 268.79 points or 4.34% to close at 6,450.05; property increased by 118.56 points or 4.18% to 2,954.65; financials jumped by 51.13 points or 3.14% to 1,675.99; mining and oil went up by 147 points or 1.43% to 10,422.91; services climbed by 21.55 points or 1.3% to 1,677.76; and industrials rose by 111.03 points or 1.18% to 9,471.07.

Advancers outnumbered decliners, 100 to 81, while 46 names closed unchanged.

Value turnover climbed to P6.04 billion on Tuesday with 582.78 million shares changing hands from P5.64 billion with 514.23 million issues traded on Monday.

Foreigners turned buyers on Tuesday with P270.44 million in net purchases from P687.43 million in net selling seen the previous trading day.

Mercantile Securities’ Mr. See placed the PSEi’s support between 6,400 and 6,550 and resistance at 6,870-7,000. — J.I.D. Tabile with Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

THE DEPARTMENT of Agriculture (DA) approved a suggested retail price (SRP) of P125 a kilo for imported red onions in the National Capital Region...

Economy

THE PHILIPPINE ECONOMY could grow by as much as 8-10% if the government can address the gaps in agriculture, investment, and good governance, according...

Economy

By Keisha B. Ta-asan, Reporter GLORIA L. JAPON, a 48-year-old public school teacher from Cavite south of the Philippine capital, admits struggling to pay...

Economy

GLOBE Telecom, Inc. has signed an agreement to lease telecommunications towers in Southern Luzon to a unit of Thailand-based Sky Tower Plc. to monetize...

Economy

A UNIT of listed holding firm A Brown Co., Inc. has secured a P400-million funding for the construction of a commercial electron beam or...

Economy

MANILA Water Co., Inc. on Monday said that it would submit its completion plan to build and operate water, sewerage and sanitation projects until...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.