Local stocks inched up by 6.26 points, or 0.10 percent,to close a 6,514.47 amid thin trading Tuesday, as investors awaited the release of June inflation report.
“Many investors were on the sidelines as the market value turnover remained weak at P2.15 billion, which was even lower than yesterday’s value. Investors were waiting for the inflation data in June that will be released tomorrow,” Philstocks Financial analyst Claire Alviar said.
The slowdown in factory activity also affected market sentiments, she said.
S&P Global Market Intelligence said the Philippines’ purchasing managers’ index declined to 50.9 in June from 52.2 in May.
The broader all-shares index also went up by 5.11 points, or 0.15 percent, to settle at 3,472.53.
Gainers beat advancers, 90 to 83, with 57 issues unchanged.
Among the most active stocks, Universal Robina Corp. climbed 3.93 percent to P140, while Bloombery Resorts Corp. rose 3.49 percent to P11.28.
Meanwhile, Asian markets mostly rose on Tuesday as investors weighed signs of a slowing US economy against hopes the Federal Reserve›s interest rate hiking cycle could be nearing its end.
Data showing a sharp drop in the central bank›s preferred gauge of inflation for May fueled a rally across equities in New York last week and Asia on Monday.
The readings followed a series of indicators suggesting the economy remained in rude health, putting pressure on the Fed to keep tightening monetary policy.
Bank boss Jerome Powell has warned more hikes are in the pipeline owing to still-elevated inflation and the strong labour market, though analysts question whether it will follow through with that.
However, while traders take the view that «bad news is good news» as it gives the bank room to hold rates, the possibility of a contraction was keeping the optimism in check.
On Monday, a closely watched survey of US factory activity showed the sector shrank again in June and hit its lowest level since May 2020.
The reading from the Institute for Supply Management (ISM) also indicates the ongoing contraction in the sector is picking up pace.
Wall Street limped to a positive close —with business thinned by traders winding down for the July 4 holiday— and most markets in Asia managed to push higher Tuesday.
Hong Kong, Shanghai, Wellington, Taipei, Mumbai and Bangkok edged up, but Tokyo, Singapore and Seoul dipped.
Sydney got a lift from the Reserve Bank of Australia›s decision to hold interest rates, though the local dollar fell against the greenback.
London was flat, while Frankfurt and Paris rose.
However, Jim Bianco, president and founder of Bianco Research, warned that while inflation was still falling, the Fed should be on alert as it could begin to climb again after getting to as low as three percent—still above the bank›s two percent target.
“If the inflation rate bottoms at three and starts drifting higher, the Fed›s going to find this unacceptable, and that two rate hikes that we have priced in for the rest of the year will happen, if not three,” he told Bloomberg Television. With AFP
