Stocks rebound on better economic data – Manila Bulletin
The local stock market regained more lost ground on encouraging economic news.
The main index jumped 104.37 points or 1.58% to close at 6,692.65 as conglomerates continued to lead the advance while banks and mining companies were in the red. Volume however weakened to 1.02 billion shares worth 4.59 billion pesos as winners outpaced losers at 116 vs 68 with 47 unchanged.
“Philippine stocks climbed near the 6700 level, ahead of the key August jobs report tonight,” said Regina Capital Development Corporation chief executive Luis Limlingan.
He added that “note that this week stocks have been weighed down by hawkish comments from Federal Reserve officials signaling that interest rate hikes aren’t going away anytime soon. Macroeconomic data was strong, however, suggesting that the global economy may continue its recovery.
Nonfarm productivity was revised up to -4.1% in the second quarter, slightly better than expected, and the year-on-year rate was revised up slightly to -2.4%.
Initial jobless claims fell 5,000 from a downwardly revised level of 232,000, below consensus expectations of 248,000, in the week ended August 27.
Claire Alviar, head of financial research and engagement at Philstocks, said: “The PSEi rallied as sentiment was boosted by further expansion in the manufacturing sector with the S&P Global Philippine PMI improving to 51, 2 in August, higher than July’s 50.8.”
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