Philippine shares rose on the back of record performances of US bourses.
The main index jumped 94.96 points or 1.46 percent to close at 6,590.11 as share prices rose across the board, led by the Holding Firms and Industrial counters.
Volume remained tepid though at 2.41 billion shares worth P5.85 billion as gainers swamped losers 159 to 61 with 39 unchanged.
“The local bourse was boosted by the easing of the inflation rate in March coupled with positive sentiment from the US Market overnight,” said Philstocks Financial Research Associate Claire Alviar.
She noted “The easing of the inflation rate in March came in better than expected which gave the market a welcome surprise. the market. However, this figure remains higher than the government's target.”
Alviar said “Other positive catalysts that have affected the trading were the continued expansion of Philippine manufacturing PMI which stood at 52.2 in March and the statement of the Malacanang that the extension of ECQ is unlikely.”
Regina Capital Development Corporation Managing Director Luis Limlingan said “Philippine shares soared close to the 6,600 level after another round of upbeat economic news from the services sector in the US and lower inflation give optimism to many investors.”
“The Dow Jones and S&P 500 reached new highs in Monday’s trading, and the Nasdaq Composite also rose,” he added.
He explained that, “The gains came on the back of a slew of positive news last week. On Good Friday, the Labor Department had reported that nonfarm payrolls increased and the unemployment rate also fell.