PSEi recovers to 7,400

Most local stocks returned to positive territory Friday, bringing the local stock barometer back to the 7,400 level ahead of key US data disclosure and a closely watched speech by the US central bank chief.

Overcoming a rough start, the Philippine Stock Exchange index (PSEi) gained 35.3 points or 0.48 percent to close at 7,411.68.  Investors took their cue from upbeat trading across the region ahead of US Federal Reserve Chair Janet Yellen’s speech.

“Market expectations for the Fed to raise rates in June or July will require that the incoming data next week (private payroll, ISM indices, consumer expenditures) verify the three preconditions that the FOMC (Federal Open Market Committee) set for a rate increase,” Citigroup said in a research note. “Look to Chair Yellen’s June 6 speech for indications that the FOMC is ready to hike ‘at the next meeting’ or possibly in July. Her continued silence would raise the likelihood of a rate hike at a later date,” it added.

At the local market, the gains were led by the services counter, which rose 1.81 percent, in turn driven by a 4.81-percent rally by telecom giant PLDT.

The financial, holding firm, mining/oil and property counters also firmed up. Only the industrial counter slipped.

Value turnover amounted to P8.97 billion. There were 99 advancers that outnumbered 75 decliners while 46 stocks were unchanged.

Apart from PLDT, First Gen also led the PSEi higher with its 4.42-percent gain. Globe and AGI also rose more than 2 percent while GT Capital, Semirara and Megaworld all advanced by more than 1 percent. Doris Dumlao-Abadilla