Funds shift fuels rebound
Investors are now worried over potential inflation spikes driven by elevated commodity and energy prices.
Investors returned to the local bourse for bargain hunting after successive sell offs as recent US economic data showed only a slightly better labor market amid increasing bond yields.
Investors are now worried over potential inflation spikes driven by elevated commodity and energy prices, according to Regina Capital Development Corp. managing director Luis Limlingan.
Philippine Stock Exchange’s index ended the day at 6,926.41, up 76.77 points (pts) or 1.12 percent higher after fluctuating from 6,841.48 to 6,926.41. Exchange volume reached 167,136 shares worth P9.169 billion.
AB Capital Securities Inc, in a note, attributed the rebound to majority of Metro Manila mayors voting to relax health restrictions.
Local market bounced back after two consecutive days of selling as nine out of 17 local chiefs in the National Capital Region voted in favor of putting the capital under modified general community quarantine by March.
Profit-taking dragged oil prices despite a steep drawdown in crude inventories. Brent crude settled 0.64 percent lower to $63.93 per barrel (/bl). The US West Texas Intermediate closed at $60.52/bl, down 1.01 percent.
Gold hovered around record lows during the choppy Thursday trading as investors’ optimism on the global recovery shifted risk appetite.
Spot gold inched 0.1 percent lower to $1,774.21 per ounce (oz). On the other hand, the gold futures went up by 0.1 percent to $1,775/oz.
Prices a main worry
Fears that the global recovery will fire inflation continued to weigh on Asian stocks as traders faced up to the fact that interest rates will not be kept at record lows forever.
Philippine Stock Exchange’s index ended the day at 6926.41, up 76.77 points or 1.12 percent higher after fluctuating from 6,841.48 to 6,926.4.1.
The rollout of vaccines, falling infection rates and the prospect of another mammoth US stimulus have sent equity markets to all-time or multi-year highs in recent weeks, with focus firmly on the long-term outlook.