Market climbs back to 6,500-level

MANILA, Philippines — Share prices rose for a second straight session, buoyed by hopes for a US Federal Reserve rate cut later this year.

The Philippine Stock exchange climbed back to the 6,500-level as it gained by 1.06 percent or 68.54 points to settle at 6,509.86.

The broader All Shares index, on the other hand, ended at 3,489.79, up by 1.05 percent or 36.10 points.

Philstocks Financial research and engagement officer Mikhail Plopenio said investors continued to digest the Philippines’ May inflation data, which at 3.9 percent, remained within the government’s two to four percent target range.

Plopenio said the positive spillovers from Wall Street overnight amid a lower-than-expected jobs report in the US likewise boosted yesterday’s session as it sparked Federal Reserve rate cut hopes.

“The local bourse extended its gains as investors digested the better-than-expected inflation print for May and anticipated that the Fed might lower interest rates later this year,” Luis Limlingan of Regina Capital said separately.

“This sentiment was bolstered by the slowdown in private payroll data, which reported 152,000 new jobs last month, adding to evidence of a weakening labor market that investors believe could prompt the Federal Reserve to cut benchmark interest rates,” he said.

All sectors finished in the positive territory, except for mining and oil, which dropped by 0.34 percent.

Services led those in the green with a 2.76 percent surge, followed by industrial, which increased by 0.93 percent.

Market breadth remained positive as advancers crushed decliners, 102 to 81, while 60 issues were unchanged.

Plopenio said yesterday’s net market value turnover was tepid at P4.15 billion, lower than the year-to-date average of P5.12 billon.

He said foreigners were net buyers with net inflows amounting to P37.17 million.