The local stock market breezed past the 7,000 resistance level as foreign funds bought Philippine shares on expectations of milder US rate hikes.
The main index rose 93.94 points or 1.35 percent to close at 7,045.48, after breaching 7,100 intraday, as Banks led the rally while the Services and Mining sectors yielded to profit taking. Volume was higher at 1.11 billion shares worth P10.23 billion as gainers beat losers 138 to 65 with 46 unchanged.
“Philippine shares touched the 7,000 level after so many months as foreign funds continued to make bets into our economy, as conviction remained high that the country would be one of the best performers in 2023,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse surged amid expectation that the Federal Reserve will be less aggressive in its rate hikes following the cooled inflation in the US.”
She added that, “The strengthening of the peso against the US Dollar lifted the market as well. Moreover, foreigners helped lift the index, registering a net inflow of P1.08 billion.“