Philippine stocks rose to end five days of decline on bargain-hunting, while the peso slightly recovered to close at 58.51 against the US dollar Friday.
The bellwether Philippine Stock Exchange index ended the week at 6,433.10, up 61.35 points, or 0.96 percent from the previous trading, while the wider all-shares index climbed 38.30 points, or 1.12 percent, to finish at 3,463.87.
Philstocks Financial Inc. research analyst Claire Alviar said the market rose on last-minute bargain hunting that pushed the index above the 6,400 level.
“Investors seized the opportunity to buy stocks at attractive prices following a five-day decline, resulting in a technical bounce at the 6,400-support level,” Alviar said.
Sectoral indices ended mixed, with services posting the biggest gain of 4.21 percent, followed by industrial with 1.99 percent and property with 1.43 percent. Financials lost 0.73 percent, while holding firms dropped 0.51 percent.
Value turnover surged to P22.22 billion on MSCI quarterly rebalancing. MSCI refers to the Morgan Stanley Capital International index, which is designed to measure the performance of the large and mid-cap segments of the market.
Meanwhile, most Asian markets rose Friday after falling for much of the week, with below-forecast US data injecting some fresh life into hopes the Federal Reserve will cut interest rates this year.
The readings came ahead of the release of the central bank’s favored gauge of inflation later in the day, which could provide more of an idea about the outlook for monetary policy.
Bets on how many reductions, if any, will be announced this year have been whittled down since January owing to a string of outsized data and warnings from decision-makers that they want to see strong evidence prices are under control before moving.
Most have called for rates to be kept elevated for some time, while some have even advocated for another hike.
Investors in Asia, who have struggled to revive a recent rally, were given a much-needed lift by US data Thursday showing the economy grew less than expected in the first quarter, personal consumption missed forecasts and jobless claims topped estimates.
The figures helped push Treasury yields down after they hit a four-week high.
But all focus is now on the personal consumption expenditures (PCE) index, which the Fed puts the most faith in when considering its plans for rates.
The report comes after data showed consumer prices eased last month — ending a run of three successive above-forecast prints — and the jobs market softened.
“Assuming the PCE comes in OK, the data suggests the Fed doesn’t need to hike and may cut later in the year,” Capital.com’s Kyle Rodda said.
Friday also sees the release of the latest eurozone consumer price index, a key data point ahead of the European Central Bank’s monetary policy meeting on June 6, when it is tipped to reduce rates.
A weak showing among most tech giants weighed on Wall Street, though investors in most Asian markets went their own way after a week of selling.
Tokyo, Sydney, Seoul, Singapore, Mumbai, Wellington and Manila but Hong Kong, Shanghai, Taipei, Bangkok and Jakarta fell.
London rose but and Frankfurt and Paris dipped.
There was little reaction to data showing China’s factory activity contracted in May for the first time in three months, denting fragile optimism about the recovery in the economy.
Still, Mark Mobius, the co-founder of Mobius Capital Partners, said he had turned bullish on the outlook for Chinese equities in recent weeks after authorities unveiled a range of measures aimed at supporting the country’s troubled property market. With AFP