Stocks jump despite rising inflation
The local stock market ended the week on a high note despite the inflation rate rising faster than expected.
The main index jumped 115.43 points or 1.67 percent to close at 7,019.18 as share prices rose across the board led by the Property sector.
However, volume was slightly lower at 19.76 billion shares worth P9.2 billion as gainers outpaced losers 123 to 76 with 56 unchanged.
“Investors brushed aside the latest CPI print and continued with the bargain hunting following overseas markets,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “Regional equities was able to extend its 3-day rally on Thursday, boosted by good corporate earnings and positive economic data.”
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse rallied as investors shrugged off inflation concerns, focusing instead on economic and corporate recovery prospects, and positive cues from Wall Street.”
He added that, “Net foreign buying worth P51.51 million was also recorded today, breaking the 15-day net outflow streak of the local market.”
AAA Equities Head of Research Chris Mangun said “The PSEi ended the week higher, wiping out almost of its losses from the week before. It gained more than 400 points to end slightly above the 7,000 key level despite the disappointing inflation numbers that just came out.”
He added that, “This week's performance tells us that there are still a lot of investors that are willing to pick up shares in anticipation of higher valuations in the longer term.“