Index climbs past 6,900 for 1st time this yr

MANILA, Philippines - Slower inflation and strong jobs data in the US allowed the bellwether index to close above the 6,900 for the first time this year.

The Philippine Stock Exchange index advanced 0.91 percent or 62.97 points to close at 6,962.28, its best finish since 7,021.95 on May 31, 2013. The broader all shares index improved 0.71 percent or 29.50 points to 4,159.49.

“Better than expected June inflation and positive sentiment out of Wall Street pushed the market barometer to break out of a two-month long consolidation,” said Jonathan Ravelas, chief market strategist of BDO Unibank Inc.

“I think it was boosted by the lower than expected inflation,” said Freya Natividad, investment analyst at Papa Securities.

But episodes of selling were seen yesterday, preventing the main index from jumping all the way up to the 7,000 psychological resistance.

Headline inflation slowed to 4.4 percent in June from 4.5 percent in May, well within the 4.1- to five-percent forecast of the Bangko Sentral ng Pilipinas. Investors had expected higher inflation amid the increase in food prices.

Overseas, Wall Street climbed anew ahead of the Independence Day holiday on the back of a strong jobs report in June. Non-farm payrolls climbed 288,000 last month, reducing the unemployment rate to 6.1 percent, data from the US Labor Department showed.

The Dow Jones industrial average picked up 0.54 percent or 92.02 points to 17,068.26, while the broader Standard & Poor’s 500 index added 0.55 percent or 10.82 points to 1,985.44, both fresh record highs.