Index gains as inflation eases in Feb

The stock market climbed yesterday, returning to the 6,700 mark as investors welcomed the slight lowering of the February inflation to 8.6 percent from 8.7 percent in January, according to analysts.

The Philippine Stock Exchange hunted for some bargains ahead of the composite index (PSEi) went up by latest inflation numbers, which turned 34 points, or 0.51 percent, to close at out to be better than the consensus of 6,705.12 while the broader All Shares 8.9 percent. index rose to 3,590.21, up by 17.15 Total value turnover reached P5.5 points or 0.48 percent. billion. Market breadth was positive

Most of the sectoral indexes were up with 102 gainers and 84 losers while except for holding firms. 48 issues were unchanged.

Unicapital Securities said investors Inflation finally eased to 8.6 percent in February from 8.7 percent in January but the Bangko Sentral ng Pilipinas reiterated readiness to adjust rates even as inflation has eased.

Meanwhile, Asian markets were up yesterday as traders geared up for this week’s release of key US jobs data and Federal Reserve chief Jerome Powell’s testimony to lawmakers.

His remarks will be closely followed for an idea about the central bank’s plans as it ramps up interest rates to quell inflation.

A recent run of figures has suggested the world’s top economy continues to run hot and inflation is not coming down as quickly as hoped, putting pressure on the Fed to keep hiking borrowing costs.

Several officials have lined up to warn that rates would have to go higher and be held there for some time.

The prospect of more tightening has dealt a blow to investors who had grown optimistic the Fed would be able to cut rates by the end of the year.

OANDA’s Edward Moya said traders were looking at two or three more quarter-point rises before the Fed holds fire.

Powell is due to speak to lawmakers on Tuesday and Wednesday, while the closely watched non-farm payrolls report for February is set to be released Friday.

That comes after January’s reading showed more than half a million new jobs were created, far more than expected.