Philippine shares on Friday followed regional stocks and Wall Street higher after US inflation eased, prompting bets the influential US Federal Reserve would take a breather from its interest rate hiking cycle.
The benchmark Philippine Stock Exchange Index jumped 1.93 percent, or 119.2 points, to 6,286.77 while the broader All Shares index expanded by 1.56 percent, or 51.23 points, to 3,328.89.
Volume, however, remained relatively thin with 441.04 million shares valued at P4.92 billion changing hands as investors remained wary of the upward move. Foreigners on Friday were net buyers to the tune of P432.7 million, data from the stock exchange showed.
US inflation climbed 7.7 percent in October, marking the smallest gain since January and a lower print from 8.2 percent in September.
Inflation data is closely followed by the US Fed, which has embarked on an aggressive monetary tightening cycle to tamp down soaring prices.
All PSE subsectors closed higher during the session, with gains led by holding firms (+2.74 percent), followed by property (+2.73 percent), mining and oil (+2.03 percent), industrial (+1.22 percent), financials (+1.01 percent) and services (+0.71 percent).
Investors also weighed movements on the latest rebalancing of the MSCI Global Standard Indices, which takes effect on Nov. 30 this year.
Deleted from the MSCI Philippines Index were Pampanga-based tycoon Dennis Uy’s Converge ICT Solutions Inc., Ty-led GT Capital Holdings and Manuel V. Pangilinan-led Metro Pacific Investments Corp.
Despite the announcement, Converge shares jumped over 4.2 percent to P12.50 per share, GT Capital rallied over 4.7 percent to P398 per share while Metro Pacific closed flat at P3.40 per share.
Online stock brokerage house COL Financial Group, in an Oct. 24 report, said Converge shares were a buying opportunity given their fair value estimate of P24.60 per share.
Meanwhile, BDO Unibank Inc. was the top traded stock as it rose 0.45 percent to P133.40 per share.
It was followed by Ayala Land Inc., up 2.87 percent to P26.90; Bank of the Philippine Islands, up 2.51 percent to P93.90; SM Investments Corp., up 4.83 percent to P825; and SM Prime Holdings Inc., up 3.24 percent to P35 per share.
Jollibee Foods Corp. rose 2.32 percent to P238.40; Semirara Mining and Power Corp., up 3.19 percent to P30.70; Ayala Corp., up 2.43 percent to P675; Globe Telecom Inc., up 0.35 percent to P2,300 and International Container Terminal Services Inc., up 0.85 percent to P178.20 per share.
Overall, there were 125 advancers against 58 losers while 40 companies closed unchanged, data from the stock exchange showed.