The stock market rose for the third straight day Friday on renewed optimism on world trade and the low 1.7-percent inflation rate in August that may sway the Bangko Sentral ng Pilipinas to lower interest rates.
The Philippine Stock Exchange Index added 35.28 points, or 0.4 percent, to 7,933.47 on a value turnover of P7.6 billion. Gainers edged losers, 96 to 91, with 46 issues unchanged.
Major property developer Ayala Land Inc. climbed 2.1 percent to P49.50, while SM Investments Corp. of the Sy Group gained 1.6 percent to P1,048.
International Container Terminal Services Inc., the biggest port operator, rose 2.8 percent to P131, while Cirtek Holdings Philippines Corp., a semiconductor manufacturer, jumped 11 percent to P12.32.
The rest of Asian markets also rose Friday as the feel-good factor that fired investors the day before looked set to push into the weekend, fueled by upbeat data and trade optimism.
A growing sense that Britain could avoid crashing out of the European Union was adding to the positive vibe and keeping the pound at a more than one-month high against the dollar.
In afternoon trade, Hong Kong was up 0.4 percent, with dealers seeming to brush off news that Fitch had downgraded its sovereign debt rating citing the sometimes violent protests in the financial hub.
Shanghai, Tokyo and Sydney all ended 0.5 percent higher.
Seoul and Taipei finished 0.2 percent higher, Wellington piled on one percent and Taipei added 0.2 percent. Singapore was up 0.1 percent, Mumbai put on 0.6 percent and Jakarta rose 0.3 percent.
After a tumultuous August, dealers were given a much-needed shot in the arm this week with news that China and the United States would resume high-level trade talks next month in Washington.
This week also saw China flag plans for fresh economy-boosting measures, while data out of Washington on Thursday showed August private-sector jobs creation beat the previous month and was higher than expected.
“In recent months, there has been a lot of tough talk from both sides, but the prospect of the two sides sitting down, and holding trade talks has lifted sentiment,” said David Madden, market analyst at CMC Markets UK.
“The trade spat has been going on for well over a year, and it is unlikely to be wrapped up soon, but at the moment things are going in the right direction.”
A forecast-topping read on the US services sector provided extra joy to investors.
The reports set the scene for the much-anticipated release of non-farm payrolls later Friday, which are closely watched for clues about the state of the world’s top economy.
The reading could also give an idea about the Federal Reserve’s plans for interest rates this year, with observers expecting it to unveil more cuts this year. Expectations for an extended run of reductions has lent much-needed support to markets this year.
However, Kristina Hooper, chief global market strategist at Invesco, said: “While this has been some positive economic data, it makes it a little more difficult for the Fed to cut rates.” With AFP