The local stock market continued to trek higher after the announcement of a favorable inflation rate for December.

The main index rose 42.83 points or 0.64 percent to close at 6,761.33 as Banks led the advance while the Services and Mining counters declined. Volume improved slightly to 1.85 billion shares worth P6.89 billion as gainers outpaced losers 93 to 84 with 53 unchanged.

“Philippine equities notched another first positive close, without any breaks so far this year, as investors looked past the FOMC meeting minutes that showed the Fed would remain aggressive in its policy to tame high inflation,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “On the data front, the Nov. JOLTS came in slightly better than anticipated, signaling continued labor market strength amid the Fed’s rate hikes to tame inflation. The ISM manufacturing index, on the flip side, showed a contraction in the sector after 30 months of expansion, signaling that interest rate increases may be working to slow the economy.”

Philstocks Financial Assistant Research Manager Claire Alviar said “The local market extended its gains, as the December Philippine inflation rate came in slower than the midpoint of the BSP's forecast range.”

She added that, “Asian markets were also in the green as China's Caixin services data shows an improvement, shrugging off the Federal Reserve's minutes that show higher interest rates may remain.”