Stocks end higher; peso strengthens to P56.11
LOCAL stocks ended Friday marginally higher on bargain hunting as investors weighed the impact of the latest MSCI rebalancing and amid easing concerns about the US economy following the release of positive economic data.
The benchmark Philippine Stock Exchange index added 5.99 points, or 0.09 percent, to 6,897.54.
The equities market failed to retake the 6,900-point resistance level, which was breached last week, ending the current trading week down 64.42 points compared to last Thursday's close of 6,961.96. Friday last week was declared a nonworking holiday.
The broader All Shares index rose 9.52 points, or 0.26 percent, to 3,742.81.
«The local market rose this Friday, after its two-day decline, on the back of bargain hunting,» said Japhet Tantiangco, senior research analyst at Philstocks Financial Inc.
«Easing recession concerns in the US brought [about] by the decline in their initial jobless claims and their upwardly revised second-quarter GDP (gross domestic product) growth data gave the local market a boost,» he added.
Gains were trimmed, however, «as investors maintained a cautious stance while waiting for [other] catalysts,» Tantiangco continued.
AdvertisementFor his part, Regina Capital Development Corp. Managing Director Luis Limlingan said the stock market moved slightly higher to close just a few points shy of the 6,900-mark as investors «took into account the latest MSCI rebalancing.»
«Direction from abroad was muted, with US stocks closing mixed despite a sharp pullback late in the afternoon session, as traders await the Federal Reserve's favored PCE (Personal Consumption Expenditures price index) inflation gauge due Friday ahead of the long Labor Day weekend,» he added.
Limlingan noted that US real GDP growth for the second quarter was revised up 0.2 percentage point to plus 3.0 percent, annualized, which was «above expectations and reflecting an upward revision to consumption growth, partially offset by a downward revision to business fixed investment growth.»
Sectors were mixed, with properties taking the lead, up by 1.89 percent, while services were the biggest losers, down 0.92 percent.
AdvertisementGainers outnumbered decliners, 104 against 88,
