Philippines: Index inches closer to 7,000

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The stock market showed no signs of rust following a long break, picking up where it left off last week as it inched closer to the 7,000 mark.

The benchmark Philippine Stock Exchange index opened the shortened trading week on a high note, gaining by 0.16 percent or 11.45 points to end at 6,973.41.

Also closing higher was the broader All Shares index, which increased by 0.31 percent or 11.55 points to 3,761.28.

'Philippine shares slowly inched toward the 7,000 level as investors start to rebalance ahead of both the MSCI and the end of month closing,' Luis Limlingan of Regina Capital said.

Philstocks Financial research manager Japhet Tantiangco said the local market continued its rally as sentiment got a boost from the US Federal Reserve's rate cut cues from the Jackson Hole Economic Symposium.

'Investors cheered the Fed's dovish signals as monetary policy easing by the Fed would give more room for the Bangko Sentral ng Pilipinas to ease their policy too,' he said.

Tantiangco said trading was quite active with net value turnover stood at P6.49 billion, higher than the year-to-date average of P4.96 billion.

Sectoral gauges were a mixed bag, with property leading those in the green with a 2.72-percent surge.

Services, on the other hand, posted the biggest drop at 0.4 percent.

Market breadth was positive as advancers edged out decliners, 110 to 94, while 51 issues were unchanged.

ACEN led the index members as it climbed by 4.81 percent, while JG Summit Holdings lost the most with 2.89 percent.

COL Financial Research head April Tan said it is still possible for the market to hit the 7,100 level this year.

'I think what's important is we need to monitor what's going on. And as far as the Philippines is concerned, will there be a crisis in the US? If the market goes down sharply in the US, then that's a concern,' Tan said.