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Business

New economic team lifts up market mood

Iris Gonzales - The Philippine Star
New economic team lifts up market mood
The bellwether Philippine Stock Exchange index (PSEi) closed at 6,726.14 yesterday, up 80.62 points or 1.21 percent, as investors reacted positively to the announcement of President-elect Ferdinand Marcos Jr. regarding the members of his economic team.
STAR / File

MANILA, Philippines — Local stocks again moved in parallel with Asian equities as global markets rebound, with domestic investors warming up to the composition of the next administration’s economic team.

“The local market continues to inch higher, following the rebound in global markets and as local investors start to digest the economic team of the incoming administration,” said AB Capital Securities in a commentary.

The bellwether Philippine Stock Exchange index (PSEi) closed at 6,726.14 yesterday, up 80.62 points or 1.21 percent, as investors reacted positively to the announcement of President-elect Ferdinand Marcos Jr. regarding the members of his economic team.

Likewise, the broader All Shares index gained 27.48 points or 0.77 percent to end at 3,596.13.

All sectors were in the green as well, with property, financials and industrial among the biggest gainers.

Total value turnover reached P5.96 billion. Advancers edged out decliners, 99 to 79, while 46 issues were unchanged.

Around Asia, shares extended overnight global gains thanks to strong results from regional tech firms and US retailers, while investors also took comfort from Federal Reserve minutes suggesting it could pause its rapid rate hikes later this year.

Wall Street closed sharply higher overnight after optimistic retail earnings outlooks and waning concerns about overly aggressive interest rate hikes by the Fed encouraged buyers.

“Despite the fact that the five-day gains on Wall Street now at and above four percent suggests that the meltdown has been snapped, there should be no mistaking that this is but earnings relief; - and should not prematurely inspire proclamations of a bull market reboot,” said analysts at Mizuho Bank.

Tapas Strickland, a director of economics and markets at NAB, said “equities are sitting in the glow of the FOMC minutes on Wednesday where it appears markets have interpreted them as opening up the possibility of a Fed pause in Q4 2022, while some note the front loading of hikes may have tightened financial conditions sufficiently.”

The Fed’s minutes of its May meeting released on Wednesday confirmed two more 50-basis point hikes each in June and July, but policymakers also suggested the potential for a pause later in the year.

PSEI

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