MANILA, Philippines — Philippine stocks opened the week on a strong note amid a growing sense of optimism among investors.
The Philippine Stock Exchange Composite index (PSEi) closed at 6,508.21, up by 40.14 points or 0.52 percent, tracking a Wall Street rally fueled by healthy US economic data.
The sectoral gauges were up as well except for industrial and service. Property, holding firms, mining and oil and financials ended in the green.
Total value turnover, however, was thin at P2.451 billion even as market breadth was positive, 98 to 91 while 45 issues were unchanged.
Luis Limlingan of Reginal Capital said Philippine investors entered the second half with a renewed sense of optimism.
The US will have a shortened trading week as the trading floor will be closed in observance of their Independence Day. Key economic data expected this week are the S&P Global US manufacturing data PMI on July 3 and unemployment rate on July 7.
“Here at home, the main event for this week is the latest reading on Philippine inflation. The unemployment rate and foreign reserves figures are also due out this week,” Limlingan said.
Investors are hoping price increases will ease enough for the Federal Reserve to soon halt its hikes to interest rates. That would mean less pressure for the US economy and for global financial markets.
A report on Friday showed a measure of inflation that the Fed prefers to use eased in May. It also said growth in spending by consumers slowed by more than expected. If fewer dollars are chasing after purchases, that could remove more pressure on inflation.
The Fed has already raised rates a mammoth five percentage points from virtually zero early last year. Traders on Wall Street pared back bets that the Fed may hike interest rates twice again this year, with the majority betting the federal funds rate will be only 0.25 percentage points higher at the end of 2023, if it all, according to data from CME Group.
The S&P 500 closed out its sixth winning week in its last seven in June and its best month since October. The index’s gain of nearly 16% through the first six months of the year is better than it’s done in 16 of the last 23 full years.