The local stock market bounced from the previous day’s drop after US inflation figures indicate that the US Federal Reserve may keep rates steady.
The main index rose 59.22 points or 0.96 percent to close at 6,208.40 as Conglomerates led the advance across the board. Volume declined to 412 million shares worth P3.81 billion as gainers and losers were even at 92 each while 35 were unchanged.
“Philippine shares bounced back as investors digested the latest US consumer price index print,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “the core CPI gained 0.3 percent month on month and 4.3 percent from 12 months earlier. Meanwhile, headline inflation increased 0.6 percent month on month and 3.7 percent year on year while economists had called for 0.6 percent and 3.6 percent.”
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said, “the local market climbed as investors saw bargain-hunting opportunities after the main index dropped below its significant support level of 6,150 last Wednesday.“
He noted that, “helping in the climb were the expectations that the Federal Reserve would keep policy rates unchanged in its next meeting after the US August core inflation rate continued to decline to 4.3 percent from 4.7 percent in the preceding month.”
“At home, many cheered the local banking industry’s non-performing loan ratio for July as it remained steady at 3.43 percent on a month-on-month basis and was lower than the same period of last year’s 3.57 percent despite a high-interest rate environment,” Plopenio said.