MANILA, Philippines — Local stocks rebounded yesterday as positive data calmed investors.
The Philippine Stock Exchange index (PSEi) finished at 6,521.27, up by 45.77 points or 0.70 percent while the broader All Shares index rose by 16.57 points or 0.48 percent to close at 3,432.71.
The local market struggled in the early part of today’s session but eventually climbed and sustained its position in the green territory,” Philstocks Financials Mikhail Plopenio said.
“Investors digested positive economic narratives today including the International Monetary Fund’s sound assessment of the Philippines fiscal consolidation, and the Philippine Economic Zone Authority’s positive outlook on its investment approvals for full year 2023,” he added.
The sectoral gauges were mixed. Most of the sectors finished in the green – financials,, property, services and industrial. Mining and oil and holding firms ended in the red.
Total value turnover, meanwhile, was thin at P4.4 billion. Market breadth was negative, 96 to 88 while 47 issues were unchanged.
Plopenio said the PSEi joined many of its regional peers.
Foreigners were net buyers with net inflows amounting to P397.01 million.
In other parts of Asia, shares were mixed after a seven-week winning streak on Wall Street cooled.
The broader market surged last week and added to solid December gains after the Federal Reserve signaled that inflation may have cooled enough for the central bank to shift to cutting interest rates in 2024.
Lower interest rates typically take pressure off of financial markets. The Fed’s goal since 2022 has been to slow the economy and grind down prices for investments enough through high interest rates to get inflation under control. Economic growth has slowed, but has not dipped into recession, while inflation continues easing.
Wall Street is betting that those conditions mean the Fed is done raising interest rates and could start cutting them in early 2024. Investors will get their last big inflation update of the year on Friday when the government releases its report on personal consumption expenditures. It’s the Fed’s preferred measure of inflation and has been easing since the middle of 2022.