Share prices regained yesterday their losses in the previous trading session as investors anticipate better-than-expected economic growth figures to be released today.

The 30-company benchmark Philippine Stock Exchange index (PSEi) gained 39.86 points or 0.57 percent to close at 7,081.36, while the broader All Shares index added 16.28 points or 0.44 percent to end at 3,702.76.

Total value turnover reached P5.75 billion. Market breadth was positive, 100 to 89, while 48 issues were unchanged.

The government will release gross domestic product (GDP) growth numbers in the fourth quarter and full-year 2022 today, with most analysts predict will breach official targets.

Chief economist Michael Ricafort of Rizal Commercial Banking Corp. said market sentiment is currently supported by more dovish signals from the US Federal Reserve and local monetary authorities that led to some downward correction in various government securities.

Around Asia, equities scaled their highest levels in seven months after some regional markets reopened after the Chinese New Year holidays.

Globally, stocks have posted strong gains this year after a torrid 2022, based on expectations that inflation is close to peaking and the rise in US interest rates will taper off. The dismantling of COVID controls in China and the re-opening of its borders have further boosted investor sentiment.

'The market continues to price for a dream scenario of inflation having peaked then coming down sharply, but not overshooting to the downside; only the very mildest of recessions by any historical standards,' Rabobank's global strategist Michael Every said in a report.

US stock indexes closed mixed on Tuesday after companies reported better than expected profits, while warning of a difficult year ahead. Data showed US business activity contracted for a troubling seventh straight month in January.

Stronger-than-expected economic data in Europe eased market worries of a sharp recession there, but interest rates are still seen creeping higher despite declining energy prices reducing inflationary pressure.

 

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