Market ends 3-day slump; SM Prime rises

STOCKS recovered Friday from a three-day slump on fresh data showing continued slowing of inflation, fanning hopes that the Federal Reserve was nearing the end of its longrunning campaign of interest rate hikes.

The PSE index, the 30-company benchmark, gained 33 points, or 0.51 percent, to close at 6,481.91, as five of the six subsectors advanced, with mining and oil leading the way.

The broader all-share index also went up 14 points, or 0.41 percent, to settle at 3,480.77 on a value turnover of P4.62 billion. Gainers led losers, 99 to 81, while 46 issues were unchanged.

Six of the 10 most active stocks ended in the green, led by SM Prime Holdings Inc. which climbed 2.89 percent to P33.80 and SM Investments Corp. which moved up 2.26 percent to P904.00.

The peso slightly picked up Friday to close at 55.21 against the US dollar from 55.26 on Thursday.

Asian equities rose Friday, with Tokyo leading the way followed by Hong Kong, Shanghai, Sydney, Seoul, Taipei and Jakarta.

The surprise on-month drop in producer prices in March—the biggest since April 2020—came a day after the consumer price index dropped more than expected, suggesting the central bank’s tightening campaign was finally paying off.

A higher-than-forecast reading on jobless claims added to the positive mood, which helped send Wall Street’s three main indexes rallying, including a two percent advance for the Nasdaq.

Investors are now betting the Fed will hike rates 25 basis points at its May gathering but possibly hold after that, with some still clinging to hopes it will even cut by the end of the year.

In a sign of cooling inflation elsewhere, Singapore’s central bank kept rates steady, having previously hiked five times in a row. The move follows similar decisions in Australia, India, Canada and South Korea.

This week’s data has reassured investors that US inflation is coming down and that the country’s economy could be heading for a soft landing, even though minutes from the Fed’s March policy meeting revealed some officials see a mild recession by the year’s end.

“Coming fast on the heels of yesterday’s better-than-expected [consumer prices] reading, today’s [producer price index] print, plus the in-line jobless claims report, reinforces the view that the labour market continues to rebalance and that the post-pandemic inflation scare is ending,” said SPI Asset Management’s Stephen Innes.