SHARE prices on the Philippine Stock Exchange (PSE) closed higher on Friday, backed by a benign inflation rate of 3.4 percent in April and a steady outlook on the US economy.
The benchmark PSEi gained 86.24 points, or 1.11 percent, to cross the 7800 line at 7,841.99, a seven-month high. The broader All Shares rose by 0.81 percent or 37.30 points to 4,673.40.
“Relatively benign inflation number for April, steadiness in the outlook for the US economy, and a modest domestic earnings season provided optimists firmer ground to rest on ahead of the weekend,” Philstocks Financial Inc. Senior Research Analyst Justino Calaycay Jr. told The Manila Times.
“The PSEi not only returned to positive territory under Duterte’s watch for the first time since the first week of
September last year, it also crossed into the 7800-line for the first time in nine months. The peso also gained some ground, advancing to the P49-area after a brief foray into the P50’s,” he added.
COL Financial Sales Vice President Juanis Barredo said the market was lifted by European and Asian markets’ recovery, aside from the US Federal Reserve’s position to keep rates steady.
Regina Capital Corp. Managing Director Luis Limlingan said the market “disregarded that the US closed narrowly mixed after the House of Representatives successfully passed a bill aimed at repealing and replacing Obamacare.”
Nearly all indices closed in the green, led by Property at 2.15 percent. Financials was up by 1.04 percent and Holding Firms advanced by 0.79 percent. Services rose by 0.77 percent and Industrials went up 0.55 percent.
Only the Mining and Oil sector was in the red, with a 1.01 percent decline.