PSEi rises back to 7,800

LOCAL stocks rallied strongly on Monday as optimism over the latest US jobs data perked up regional markets.

The main-share Philippine Stock Exchange index racked up 93.75 points or 1.21 percent to close at 7,865.27. Upbeat foreign investors continued to bring more liquidity to the local bourse.

The gains were led by the property counter which jumped by 2.43 percent while holding firms also advanced by 1.18 percent. The financial, industrial and services firms also inched up.

The mining/oil counter ended slightly lower, reflecting a more challenging regulatory environment for the sector.

Value turnover for the day amounted to P8.14 billion. Foreign investors were still in a net buying position amounting to P808 million for the day.

There were 131 advancers that edged out 73 decliners while 43 stocks were unchanged.

Megaworld led the PSEi higher with its 4.3-percent rise while SM Prime, ALI, MPI, BDO and Jollibee all surged by over 2 percent.

SMIC, JG Summit, RLC, AEV and GT Capital all gained over 1 percent.

On the other hand, URC, Globe, AC and AP also firmed up.

Outside of the PSEi, the notable gainers included Alterra Capital Partners, which surged by 42.11 percent.

Across the region, investors drew optimism from the favorable US jobs data for the month of June.

Payroll growth popped up to 287,000 in June – a “big payback” from prior weak reports, investment house BofA Merrill Lynch said. The three-month trend of job creation is now at 147,000.

Meanwhile, the unemployment rate rose to 4.9 percent but this was amid an increase in labor force participation. Wages grew by 0.1 percent month-on-month and 2.6 percent year-on-year in June. “This should relieve some concerns for (US Federal Reserve) Fed officials, but they likely remain concerned about global downside risks,” BofA Merrill Lynch said.

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