Stocks surge despite higher inflation rate


The local stock market ignored the high November inflation rate amd surged on positive news overseas.

The main index jumped 232.25 points or 3.61 percent to close at 6,674.38 as Conglomerates led the rally. Volume improved to 582 million shares worth P6.04 billion as gainers beat losers 100 to 81 with 46 unchanged.

PSE

“Investors shrugged concerns that the Fed will need to hike interest rates for longer than previously anticipated with the intended goal of bringing down inflation following the better than expected Nov. ISM services data,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Meanwhile, at home, there were no concerns brought about by inflation hitting 8 percent which was above the latest Bloomberg median estimate.“

Philstocks Financial Assistant Research Manager Claire Alviar said The local bourse went up as investors continue to cheer China's reopening despite the high inflation at home.”

She noted that, “Bargain hunting after three consecutive days of decline helped lift the index. Moreover, the World Bank's upwardly revised growth outlook for the Philippines this year to 7.2 percent amid the strong reopening of the economy spurred optimism.”