Index gains on hopes of stronger Q2 growth

Share prices went up yesterday on hopes of a stronger economic performance in the second quarter

At the Philippine Stock Exchange (PSE), the benchmark Philippine Stock Exchange Composite index (PSEi) rose by 28.74 points or 0.45 percent to settle at 6,434.24.

Likewise, the broader All Shares index gained 16.67 points or 0.49 percent to close at 3,448.73.

Analysts said traders are waiting for the second quarter economic report which is slated to be released today.

Most economists said the Philippines likely sustained the strong economic performance with a gross domestic product growth of more than eight percent in the second quarter.

Unemployment rate was steady at six percent in June but the highest in four months since February 2022.

Most of the other indexes finished in positive territory except for the mining and oil and property sectors.

Total value turnover was robust at P7.9 billion. Market breadth was positive as advancers leaped ahead of decliners, 113 to 55 while 55 issues were unchanged.

Meanwhile, Asian stocks were mixed yesterday after strong US jobs data cleared the way for more interest rate hikes and China reported its exports rose by double digits.

Shanghai and Tokyo advanced while Hong Kong and Seoul retreated. Oil prices edged higher.

Wall Street’s benchmark S&P 500 lost 0.2 percent on Friday after government data showed American employers added more jobs than expected in June. That undercut expectations a slowing economy might prompt the Fed to postpone or scale back plans for more rate hikes to cool inflation.

“Now it seems they will be debating whether they need to be even more aggressive,” Edward Moya of Oanda said in a report.

Markets also have been rattled by Russia’s war on Ukraine, which has caused prices of oil, wheat and other commodities to spike and by uncertainty about the impact of Chinese anti-virus curbs that have disrupted manufacturing and shipping.