GREEN SHOOTS PROP MARKET
The PMI fell below the 50-mark amid the pandemic
Local shares edged higher with signs of improving economic conditions spurring bargain hunting across the board.
Local factory output last month remained somewhat stable, as the February Purchasing Managers’ Index (PMI) came in at 52.5 which was the second consecutive month of PMI expansion, Regina Capital Development Corp. managing director Luis Limlingan said.
The PMI fell below the 50-mark amid the pandemic, Limlingan added.
Bellwether Philippine Stock Exchange index (PSEi) closed the day at 6,872.97, which was 78.11 points (pts) or 1.15 percent higher.
Trading ranged between 6,798.81 to 6,874.40 on a volume of 158,464 shares valued at P7.723 billion.
Elsewhere in Asia, equities rose as investors took a breather following last week’s heavy selling.
Trading floors were still gripped by fears that the expected global economic recovery will fuel inflation and force a hike in interest rates earlier than previously thought, removing a key pillar of the surge in world markets for the past year.
Loose tack to linger
In a bid to calm markets, several central banks, including in Japan, South Korea and the European Union, reiterated their pledges to maintain their ultra-loose monetary policies for as long as needed. Australia led the way by ramping up its asset purchases to keep government yields low.
The steep losses last week provided an opportunity for bargain-buyers Monday, sending Asia rallying with Tokyo up more than two percent, while Hong Kong and Sydney put on more than one percent. Shanghai, Singapore, Jakarta and Manila also enjoyed healthy gains. Seoul and Taipei were closed for holidays.
However, fears about a spike in inflation continue to linger, and while the imminent passage of Biden’s vast rescue package is expected to bring crucial relief to the economy and struggling Americans, many traders see it as likely to add to the upward surge in prices.