Stocks rose Friday to end a seven-day slump, as investors searched for bargains while waiting for the release of a crucial US jobs report.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 34 points, or 0.4 percent, to close at 7,807.42 Friday. The bellwether was also up 12.3 percent since the start of the year.
The heavier index, representing all shares, gained 14 points, or 0.3 percent, to settle at 4,629.86, on a value turnover of P7.7 billion. Advancers led losers, 117 to 73, while 51 issues were unchanged.
Nine of the 20 most active stocks ended in the green, led by property developer Ayala Land Inc. which went up by 2.9 percent to P39.50 and conglomerate SM Investments Corp. which rose 2.2 percent to P689.50.
Medco Holdings Inc. tumbled 17.4 percent to P1, after surging more than 49 percent a day earlier.
Meanwhile, Asian markets fluctuated in a narrow range as investors avoided taking on risk before key US payrolls data that may provide hints on the path of interest rates in the world’s largest economy.
Commodity shares fell as oil headed for its worst weekly drop in eight months on signs of a glut.
“All eyes are clearly focusing on the non-farm payrolls data,” James Woods, a strategist at Rivkin Securities in Sydney, said by phone.
“Even if we do see a strong reading in the payrolls, I don’t really expect that the Fed would act in September. The recent data has been improving and its certainly a good sign but its not enough yet to suggest that they have to hike imminently,” Woods said.
Weaker-than-forecast US manufacturing data on Thursday raised concerns that the patchy growth in the economy may prompt the Fed to hold rates for longer.
“There is potential for markets to whipsaw should we see robust US jobs data tonight,” Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, said in a client note, according to Bloomberg News.
“A stronger US labour market isn’t new news for the Fed or its watchers, rather, it is areas such as manufacturing and retail that are currently causing concern, not to mention a generalized lack of inflation. But nonetheless, payrolls data is traditionally a big market mover, so buckle up.”
Asian stock markets swung to and fro through the morning as traders jostled for positions ahead of the jobs report.
Tokyo ended the morning 0.1 percent higher, while Hong Kong added 0.6 percent and Shanghai was up 0.3 percent. Sydney shed 0.7 percent and Singapore 0.2 percent. Seoul was flat. With AFP, Bloomberg