Stocks rose on Monday before the release of the main US earnings report and economic data, despite fears of more aggressive tightening by the US Federal Reserve.
The benchmark Philippine Stock Exchange Index (PSEi) rose 11.21 points, or 0.16%, to close at 6,996.11 on Monday, while all broad stocks fell 2.62 points, or 0.07%, to 3,723.96.
“Philippine stocks have closed slightly higher as investors braced for one week of the first major US earnings report for the first quarter of 2022,” he said. Last week, U.S. equities closed lower on Thursday because they feared higher rates and inflation could darken the economic outlook for earnings, ”Lewis A. Limlingan, head of sales at Regina Capital Development Corporation, said in a Viber message.
Mr. Limlingan said the market is waiting for the release of U.S. data on housing data estimates, unemployment claims and purchasing managers indicators.
“Local stocks were able to post marginal gains on Monday even though most investors were on the sidelines in the absence of new incentives. The market feared that some macro data, particularly inflation and interest rates, supply chain problems and higher oil prices could lead to some uncertainty in the coming months, “said Manny P. Cruz, Papa Securities Corporation equities strategist in a text message.
U.S. stock investors worried that the Fed’s fight against geopolitical uncertainty and inflation could spur economic growth into a defensive sector, believing that the weather could be better in turbulent times and there is a tendency to pay stronger dividends, Reuters reported.
The healthcare, utilities, consumer staples and real estate sectors still posted gains in April, although broader markets fell, continuing a trend that surpassed their S&P 500 this year.
The Fed says most investors are looking to tighten its policy to fight rising consumer prices. Several large Wall Street banks have expressed concern over the Fed’s aggressive move, which could lead to a recession.
At home, sectoral indicators split on Monday. Services rose 19.45 points, or 1%, to 1,946.56; Mining and oil rose 73.03 points, or 0.59%, to 12,290.64; And assets rose 16.94 points, or 0.52%, to 3,238.38.
Holdings, meanwhile, fell 18.58 points, or 0.28%, to 6,552.06; Industry lost 25.28 points, or 0.26%, to 9,608.53; And financial 3.82 points or 0.23% decrease to 1,649.63.
The midcap index lost 5.55 points, or 0.47%, to close at 1,168.14, and the dividend yield index rose 0.42 points, or 0.03%, to 1,676.78.
The turnover fell to P3.66 billion with a change of 751.06 million shares from P4.21 billion with 1.42 billion issues on Wednesday. The market was closed on April 14-15 for the observance of Mandi Thursday and Good Friday.
Decliners narrowed the forward, 96 vs. 90, while 47 names remained unchanged.
Net foreign sales fell to P198.13 million from P294.89 million seen in the previous trading day. – Luisa Maria Jacinta c. Jackson With Reuters