Index advances for 4th straight trading session

MANILA, Philippines — The main stock index advanced for a fourth consecutive session, as investors took comfort from easing inflation and unemployment numbers, setting aside worries over the Omicron variant in the meantime.

The benchmark Philippine Stock Exchange index (PSEi) closed  at 7,147.30 yesterday, gaining 16.56 points or 0.23 percent, although the broader All Shares index lost 6.58 points or 0.17 percent to finish at 3,805.51.

Total value turnover reached P7.860 billion. Decliners, however, outnumbered advancers, 137 to 63, while 36 issues were unchanged.

“The Philippine market bounced at the close after trading in the red throughout most of the day. However, performance was mostly flat and volume was muted as most investors stayed on the sidelines ahead of a non-trading holiday (today),” said AB Capital Securities in a commentary.

Asia’s emerging share markets also strengthened as fears surrounding the Omicron coronavirus variant ebbed and risk appetite revived on reports suggesting that the new variant may be relatively mild.

“Philippine shares continued to rebound on reports that the Omicron variant is less severe than expected,” said Luis Limlingan of Regina Capital.

The market likewise welcomed the slowdown in inflation to 4.2 percent in November, its lowest level in four months, supporting expectations that the central bank will keep its benchmark interest rates steady at its last meeting this year to support an economic recovery.

“We expect the Philippines to post robust growth numbers over the next two quarters, which may be enough to convince (BSP) Governor Diokno to finally decide to adjust his current accommodative stance,” Nicholas Mapa, senior economist at ING, said in a note.