Index gains ahead of inflation data

MANILA, Philippines — Stocks inched closer to the 7,000 mark yesterday as investors noted the continuous improvement in the country’s COVID-19 situation, although cautious ones decided to sit out trades ahead of today’s release of the inflation print for September.

The benchmark Philippine Stock Exchange index (PSEi) closed up 37.29 points or 0.54 percent to 6,960.89, while the broader All Shares index gained 21.68 points or 0.50 percent to finish at 4,348.19.

Total value turnover, however, remained thin at P5.889 billion, with market breadth nearly flat as 55 issues were unchanged.

Online portal 2TradeAsia.com said the coming sessions might re-test rallies above the 7,000 zone while cautious players might opt to lock in gains.

Moving forward, it said optimism drivers would come from Congress’ approval of the 2022 national budget and the improved manufacturing performance in September, which showed an expansion. For the rest of the year, improved or lesser quarantine restrictions will also help bring back investors into the market.

In a report, COL Financial said with the resilience being shown by select stocks, it can inspire confidence that a broader market rally could be possible once the 7,000 level is conquered again.

“Still, be on the lookout for global market developments, especially with interest rates rising again, as that may sway the action in local stocks,” it said.

The PSEi largely moved sideways last week after the US market corrected lower on rising interest rates, while investors also noted the extension of Alert Level 4 for Metro Manila until Oct 15.