Stocks rebound, end week higher

Stocks halted a two-day downturn to end the week higher yesterday, as market sentiment got a boost from a rebound on Wall Street and better growth expectations for the Philippine economy this year.

“The PSEi ended the week higher by 1.1 percent, uplifted by positive catalysts with the spillover effect from the US market rebound and the Asian Development Bank upgrading its Philippine GDP growth forecast to 6.5 percent from its previous six percent estimate,” said Ralph Jonathan Fausto of Unicapital Securities.

The benchmark Philippine Stock Exchange index (PSEi) ended the week at 6,263.39, up by 7.22 points or 0.12 percent. The broader All Shares index, on the other hand, was almost flat – down by a mere 0.80 point or 0.02 percent to 3,381.06.

Total value turnover thinned to P3.3 billion, as market breadth was negative, 92 to 82, with 56 issues unchanged.

“Local shares ended Friday marginally higher on a softer greenback. Investors also digested a slump in oil prices. The latter was tamed by higher US gasoline stockpiles,” Regina Capital said in a report.

Elsewhere in Asia, shares were mixed after another day of gains on Wall Street amid a deluge of news about the economy, interest rates and corporate profits.

Much of the focus this week has been on Europe. The European Central Bank opted, as expected, to raise its key interest rate Thursday, ending a years-long experiment with negative interest rates. It was its first increase in 11 years.

The US Federal Reserve, meanwhile, is set to raise rates next week for a fourth time this year, once again trying to tamp down high inflation without pulling the economy into a recession.

Some parts of the US economy already have begun to soften.

The number of workers who filed for unemployment benefits last week was the highest in eight months, though it remains relatively low. A separate report released Thursday showed manufacturing in the midAtlantic region weakened much more than economists had expected.