Connect with us

Hi, what are you looking for?

News

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

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

News

Egg vendors arrange their products for sale at a store along Blumentritt in Manila, Jan. 26. Filipinos are grappling with soaring prices of food,...

News

ICC prosecutor authorized to reopen Philippines drug war investigation – BusinessWorld Online ...

News

At Christmastime, monster waves and winds battered the 23-year-old Tubbataha Ranger Station. (Inset photo) Metro Pacific Investments Foundation, Inc. committed to provide an additional...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Have you ever wondered how long it would take a CEO to make the UK’s average yearly salary? High Pay Day...

News

PHILIPPINE STAR/ MICHAEL VARCAS By Luisa Maria Jacinta C. Jocson, Reporter THE PHILIPPINES weathered record inflation and interest rate increases last year by posting...

News

PHILIPPINE STAR/ MIGUEL DE GUZMAN PHILIPPINE DEMAND for oil would probably grow at an average 3.4% between 2022 and 2031, according to Fitch Solutions...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.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 © 2022 Respect Investment. All Rights Reserved.