Stocks up on weak US jobs data

Local stocks rallied Monday  as investors cheered disappointing jobs data in the United States, which analysts said could signal a delay in an interest rate increase by the powerful US Federal Reserve.

The benchmark Philippine Stock Exchange index (PSEi) was up 1.12 percent, or 84 points, to 7,598.22. The broader All-Shares index was also up 0.84 percent to 4,529.46.

“Investors came back after reports on US payroll data, which point toward a softening of the US economy that could delay a rate increase,” Astro Del Castillo, First Grade Finance Inc. managing director, said in an interview.

US employers added just 38,000 jobs last month, below market expectations, official data showed.

Del Castillo said there might be added momentum to lift stocks, but investors could also expect the benchmark index to begin consolidating midway through the week.

Subsectors, meanwhile, all closed positive Monday . This was led by property, up 2.22 percent, followed by services, up 1.44 percent, and financials, which rose 0.86 percent. About 2 billion shares valued at P7.16 billion changed hands. A total of 101 companies gained while another 80 closed in the red and 48 were unchanged.

JG Summit Holdings Inc. led the list of most actively traded companies as it rose 0.48 percent to P83.90 a share.

This was followed by Ayala Corp., up 1.18 percent to P855; Philippine Long Distance Telephone Co., up 1.01 percent to P2,000; Ayala Land Inc., up 3.84 percent to P37.90, and BDO Unibank Inc., up 1.63 percent to P105.70 a share. Miguel R. Camus