PHILIPPINE stocks closed higher on Monday, breaching the 6,900-point resistance level anew amid expectations that August inflation numbers would come in lower compared to the previous month.
Also, market sentiment received a boost from Wall Street's positive performance over the weekend.
The benchmark Philippine Stock Exchange index rose 25.87 points, or 0.38 percent, to close at 6,923.41, breaching the crucial 6,900-point resistance level.
The broader All Shares index added 8.60 points, or 0.23 percent, to 3,751.41.
"Expectations that inflation had declined last August compared to July's 4.4 percent drove market sentiment," Philstocks Financial Inc. senior research analyst Japhet Tantiangco said.
In a statement released late last week, the Bangko Sentral ng Pilipinas' (BSP) said it "projects August 2024 inflation to settle within the range of 3.2 to 4.0 percent."
"Investors also took their cue from Wall Street's positive performance last week," Tantiangco added.
US markets closed higher last Friday, with the Dow Jones Industrial Average rising 228 points, or 0.6 percent, and setting another all-time high, after US July inflation remained low, keeping the US Federal Reserve on track to cut policy rates at its next meeting.
Regina Capital Development Corp. Managing Director Luis Limlingan, however, viewed Monday's market performance as "lukewarm."
He said stocks "got off to a lukewarm start for September," with several private and public institutions suspending work due to heavy rains.
Nonetheless, he noted sentiment "also got a boost from the US, which saw their equity markets close in the green over the weekend."
Sectors were mixed, with holding firms leading gainers, closing up 1.27 percent, while mining and oil were the biggest losers, down 2.28 percent.
Gainers edged out decliners, 105 against 84, while 56 stocks were unchanged.
Peso weakens to P56.38
Meanwhile, the local currency ended Monday trading weaker against the US dollar.
The currency closed at P56.38, down 26 centavos from the previous close of P56.111 against the greenback, data from the Bankers Association of the Philippines (BAP) showed.
The peso opened trading at P56.22:$1 and hit a peak of P56.40 before settling at P56.38.
Volume dropped sharply to P604 million from the previous session's P1.235 billion due to a shortened trading period. The afternoon session was canceled when Malacañang ordered work in government offices suspended due to inclement weather.
According to Rizal Commercial Banking Corp. chief economist Michael Ricafort, the peso weakened as the US dollar index, which measures the value of the dollar against a basket of major global currencies, rose to its highest level in two weeks.
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