The stock market ended firmer on Monday, Oct. 7, as investor optimism was fueled by the significant slowdown in the country’s inflation rate last month.
The bellwether index rose by 1.16 percent or 86.76 points to close at 7,554.68 while the broader All Shares grew 1.02 percent or 41.32 points to end at 4,082.97.
Philstocks Financial Inc. senior research analyst Japhet Louis Tantiangco said investors continued to cheer the significant slowdown of the Philippines’ inflation last September “as it strengthens the case for further monetary policy easing by the Bangko Sentral ng Pilipinas.”
On Friday, the Philippine Statistics Authority (PSA) reported that the inflation rate in September dived to a four-year low at 1.9 percent from the 3.3 percent registered a month prior. It also marked a significant drop from the 6.1 percent booked in the same period last year.
Year-to-date, average headline inflation was at 3.4 percent, well within the government’s target range of 2 to 4 percent.
Meanwhile, Timson Securities Inc. trader Jervin de Celis said investor confidence was buoyed by optimism after strong US labor data eased concerns about a potential landing in the US economy.
“Strong employment numbers fueled hopes of steady economic growth and at least one more US Fed rate cut, lifting investor sentiment,” he said.
Last week, US reported a 4.1-percent decline in unemployment rate, with employers adding 254,000 jobs, higher than the previous 12 months’ average monthly gain of 203,000 and the 159,000 jobs booked in August.
Locally, sectoral indices were mixed, with the financials and mining and oil the only losers, down by 0.46 percent and 0.39 percent, respectively.
More than 1.35 billion issues changed hands valued at P7.87 billion.
Winners led losers, 129 to 79, while 49 issues remained unchanged.