The local stock market rallied to close the week on a stronger note after news that the US inflation rate eased last month.
The main index surged 118.01 points or 1.73 percent to close at 6,951.54 with Banks leading the charge across the board. Volume rose to 1.63 billion shares worth P9.24 billion as gainers outnumbered losers 126 to 64 with 46 unchanged.
“Philippine shares snatched another winning day as the US December's CPI report showed prices declined 0.1 percent over November,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “While prices rose at a 6.5 percent pace compared to the previous year, the results heightened hopes that the Federal Reserve may soon slow its hiking.”
“Back home, the equities rally was boosted by BSP Governor Felipe Medalla's rosy inflation outlook. In a statement, Mr. Medalla said the worst of the CPI surge was potentially over, and inflation could drop fall within the national government’s target range of 2-4 percent in the third quarter of 2023,” added Limlingan.
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse had a strong rally, as investors cheered the easing of US inflation in December.
She added that, “We see the next resistance at 7,000-7,100, support would be at 6,800.”