Philippine shares closed higher on Monday following positive economic data out of the United States and China.
The bellwether Philippine Stock Exchange index (PSEi)climbed by 1.1% or 76.28 points to close at 6,979.81 on Monday, while the broader all shares index rose by 0.8% or 28.89 points to end at 3,636.40.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that the local bourse closed higher following US and China data.
“In the US, the February print of the personal consumption expenditures (PCE) price index, the preferred inflation gauge of the Federal Reserve, was in line with consensus estimates and slower than the January data. This reinforced bets that the Federal Reserve is on track to cut interest rates as soon as June this year,” he said.
The PCE price index rose 0.3% last month, the Commerce department’s Bureau of Economic Analysis said, Reuters reported. Data for January was revised higher to show the PCE price index climbing 0.4% instead of 0.3% as previously reported. Economists polled by Reuters had forecast the PCE price index gaining 0.4% on the month.
In the 12 months through February, PCE inflation advanced 2.5% after increasing 2.4% in January.
“There was also good news from China where data showed that manufacturing activity expanded for the first time in six months,” Mr. Colet added.
“The optimism in Asia, given the expansion of China’s factory activity at its fastest rate in 13 months, lifted the sentiment at home. This gives hope for the recovery of China’s economy, which would be favorable for our economy as it affects trades and tourism in our country,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar likewise said in a Viber message.
China’s manufacturing activity expanded for the first time in six months in March, an official factory survey showed on Sunday, Reuters reported.
The official purchasing managers’ index rose to 50.8 in March from 49.1 in February, above the 50-mark separating growth from contraction and topping a median forecast of 49.9 in a Reuters poll.
Back home, the majority of sectoral indices rose. Holding firms gained by 1.75% or 113.23 points to 6,574.45; financials increased by 1.5% or 30.65 points to 2,064.92; property went up by 1.4% or 39.33 points to 2,849.14; services climbed by 0.27% or 5.01 points to 1,856.03; and mining and oil rose by 0.02% or 2.07 points to 8,125.37.
Meanwhile, industrials dropped by 0.53% or 48.28 points to 9,051.30.
Value turnover declined to PHP 5.49 billion on Monday with 1.19 billion issues changing hands from the PHP 10.67 billion with 2.44 billion shares traded on Wednesday.
Advancers beat decliners, 96 against 90, while 53 names closed unchanged.
Net foreign buying stood at PHP 464.45 million on Monday versus the PHP 310.52 million in net selling recorded on Wednesday. — R.M.D. Ochave with Reuters
This article originally appeared on bworldonline.com