Stocks gain further but volume drops
Local share prices rose, as they continue to ride on a wave of growing optimism among investors.
The PSEi added 34.12 points or 0.49 percent to close at 7,036.38 as the Industrial and Property indices led the advance with only the Financials counter retreating.
However, volume dropped to 1.79 billion shares worth P4.31 billion as gainers beat losers 110 to 98 with 51 unchanged.
“Philippine shares continued to climb after the June jobs report showed an accelerating recovery for the U.S. labor market,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Other markets reacted positively as well, on the back of a weakening dollar and prospects for U.S. Federal Reserve tightening.”
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market climbed on the back of economic recovery hopes sparked last week by the country’s good employment and manufacturing data.”
He noted that, “The said hopes were strengthened by the improvements in consumer sentiment based on the Bangko Sentral ng Pilipinas’ Q2 2021 survey. The anticipation of a lower inflation for June also helped in Monday’s gains.”
AAA Equities Head of Research Chris Mangun said “The PSEi inched higher on lower trading volumes, led by gains in Property and Holding Firms. Monday has always been a slow trading day as most markets abroad are still closed for the weekend.”
He said “There is a lot of optimism among investors as most are willing to hold and even add to current positions as the economy recovers. However, everyone will be watching the inflation figures that will be out later this week, and any unwelcome surprises may cause a selloff.”