The local stock market moved up as investors ignored higher than expected inflation data and focused on the lower jobless rate and the easing of quarantine restrictions.
The main index rose 35.61 points or 0.52 percent to close at 6,912.71 although sectoral indices were evenly mixed with the Services counter leading the advance while banks chalked the biggest loss.
Volume remained low at 1.96 billion shares worth P5.4 billion as gainers beat losers 119 to 76 with 41 unchanged.
“Philippine shares edged higher during the US Labor Day holiday following the dip in the benchmarks last week when the August US jobs data disappointed the market,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Investors also brushed off the latest inflation print, which showed an acceleration in August of 4.9 percent. According to the latest Bloomberg survey the median consensus forecast was 4.4 percent, which pointed to most already an uptick due to higher electricity, oil and food prices.”
“Lastly, the Japan Credit Rating Agency (JCR) affirmed the country's A- rating due to its economic resilience, relatively low debt levels, and unimpaired fiscal soundness,” Limlingan noted.
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market rose as investors were cheered by the decision to place the National Capital Region under general community quarantine with granular lockdowns beginning September 8, 2021.”
He explained that, “The easing of restrictions in the NCR, which is the biggest contributor to the economy region-wise, is seen to mitigate the country’s overall economic losses.“