Strong corporate earnings buoy Phl stocks
The stock market opened the week on a strong note yesterday as investors welcomed the stronger-than-expected corporate earnings results for 2022.
The benchmark Philippine Stock Exchange Composite index (PSEi) gained 15.75 points, or 0.24 percent, to settle at 6,671.12. Likewise, the broader All Shares index rose by 8.64 points, or 0.24 percent, to close at 3,573.06.
Total value turnover reached P4.75 billion. Market breadth was positive with 102 gainers and 83 losers while 45 issues were unchanged.
Unicapital Securities said the index is expected to trade sideways as investors wait for the inflation report due today.
The Bangko Sentral ng Pilipinas (BSP) expects the February inflation to settle at a range of 8.5 to 9.3 percent, higher than January’s 8.7 percent.
Meanwhile, Asian markets enjoyed healthy gains yesterday day over murmurs that the US Federal Reserve may loosen its monetary tightening but stocks in Hong Kong and China were muted after Beijing announced its lowest economic growth target in decades.
Traders in Tokyo appeared bullish about positive news flowing in from the United States, where Wall Street had rallied on Friday. An end-of-week slide in Treasury bond yields fortified beliefs the Federal Reserve was nearing the end of its rate-hiking cycle.
The Nikkei 225 jumped more than one percent, with similar gains posted in Taipei, Seoul and Sydney.
Federal Reserve chair Jerome Powell is set to discuss monetary policy before the House and Senate committees on Tuesday, proceedings that will be scrutinized by investors angling for positive interest rate news.
“Most important will be whether the Powell takes the opportunity to express a preference for sticking with a 25-basis-point hike in March or if he leaves the door ajar for returning to a faster pace this month,” said Stephen Innes of SPI Asset Management.
“If Powell does not slam the door shut on the potential for a larger hike, markets could put substantially more weight on a 50-bp hike at the March meeting in response to last month’s hotter data.”
Traders are also awaiting US payroll data on Friday and the Bank of Japan’s two-day policy meeting from Thursday, which will be the last for governor Haruhiko Kuroda.