MANILA, Philippines — Local shares surged on Monday ahead of key data releases, taking cues from a resurgent performance from US equities and declining oil prices in global markets.
The Philippine Stock Exchange index advanced 1.66% to close at 6,715.75. The broader All-Shares index landed in the green as it rose 1.12%, while most of sub-indices turned in a cheery performance. Gainers were led by shares in the holding firms and services indices.
Sought for comment, Michael Enriquez, chief investment officer at Sun Life Investment Management and Trust Corp., said that the local bourse’s rosy showing had a lot to do with trading elsewhere.
“The PSEi rallied today together with other Asian markets in reaction to the positive US equity market and lower oil prices. Investors are looking at lower magnitude of interest rate hikes in the coming months,” he said in a Viber message.
As it is, global economies are headed for a downturn in months to come due in part to a bevy of interest rate hikes from central banks to quell inflation and overheating demand.
Oil prices slowed its ascent in recent weeks due in part to increased production from OPEC Plus. Despite that, these oil producers have agreed to cut production by October in a bid to keep prices hovering at $100 per barrel.
Luis Limlingan, head of sales at local brokerage Regina Capital, noted that data releases this week, from here and abroad, could have contributed to the market’s upbeat showing.
“Philippine shares climbed above the 6700 level as investors are looking ahead at the release of the US Aug CPI report slated for release on Tuesday. The report is one of the last pieces of data on inflation the Wall St. will see ahead of the Fed's meeting on September,” he said in a Viber message.
“Meanwhile, the OFW cash remittances for Jul is expected to be out within the week,” Limlingan added.
Regional equities joined in on the fun, as shares in Japan, Australia, Singapore, Taiwan and Jakarta surged once markets opened on Monday.
Foreign investors bought P580.3 million more shares than they sold in the stock market. A total of 786.9 million stocks, valued at P4.27 billion, switched hands on Monday. — with AFP