Economy · July 7, 2022

The PSEi rises as inflation stabilizes within estimates

The Philippine Stock Exchange Index (PSEi) jumped for the third consecutive trading day on Tuesday by 126.37 points, or 2.04 percent, to close at 6,309.99.

Japhet Tantiangco, senior research analyst at Philstocks Financial Inc., said investors continued their bargain hunt as the Philippines’ June inflation rate fell within expectations to 6.1%, the midpoint of the Bangkok Sentral ng Pilipinas range forecast.

Regina Capital Development Corp. CEO Luis Limlingan also noted this. According to his analysis, local inflation has risen but has stabilized within the value of market expectations since Bloomberg’s latest consensus of 6.0%. The higher prices of major food products, the depreciation of the peso and the rise in global crude oil prices were the main culprits.

According to Rizal Commercial Banking Corp, easing in global commodity prices continues to boost market sentiment due to the continued aggressiveness of Federal Reserve rate hikes. chief economist Michael Ricafort.

For possible US catalysts, Limlingan noted the release of June employment report data on Friday, with economists expecting employment growth to slow to 250,000 nonfarms (payrolls) with the unemployment rate falling. maintains at 3.6%.

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For Asian equities, an Associated Press report said stocks fell Tuesday in Europe after an upbeat session in Asia, as Wall Street futures slid before US markets reopened on Independence Day.

Indices also fell in Paris, London, Frankfurt and Shanghai, but stocks gained in Tokyo, Seoul and Hong Kong.

Furthermore, the war in Ukraine and its impact on global energy supplies continue to cast a shadow over the global economic outlook at a time when central banks are raising interest rates to slow inflation.

On Tuesday, the International Energy Agency said high natural gas prices and supply concerns due to the war in Ukraine will squeeze economic activity, slowing demand growth in the coming years.

Trade remained uncertain with net sales reaching £ 3.98 billion, below the year-to-date average of £ 6.60 billion.

Foreigners were still net sellers with net outflows of P146.06 million.

All sectors advanced with properties in the lead, with an increase of 3.41%.

Earnings took losers from 119 to 71 while 46 stocks remained unchanged.