Mart optimistic amid Q2 GDP data

Shares moved higher as the market awaits the release of the second quarter gross domestic product figures today.

Latest unemployment figures released yesterday showed the figure holding steady at 6 percent. Regionally, investors will shift their focus to the key inflation report this week.

The Philippine Stock Exchange index closed at 6,434.24 up by 28.74 points.

Last Friday, in the US, the Bureau of Labor Statistics reported hiring in July was far better than expected, defying multiple other signs that the economic recovery is losing steam.

Non-farm payrolls rose 528,000 for the month and the unemployment rate was 3.5 percent, easily topping the Dow Jones estimates of 258,000 and 3.6 percent, respectively, Regina Capital Development Corp. managing director Luis Limlingan said.

The unemployment rate is now back to its pre-pandemic level and tied for the lowest since 1969.

Meanwhile, global oil prices dropped to their lowest levels since before Russia’s February invasion of Ukraine as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand. Benchmark Brent crude futures ended the day 2.75 percent lower at $94.12 a barrel. US West Texas Intermediate crude futures settled 2.3 percent lower at $88.54.

Uptrend continues

At the close of the market last week, the local bourse continued an upward bias as it rose by 1.42 percent from 6,315 up to 6,406 following the positive second quarter reports of listed firms.

COL Chief Technical Analyst Juanis Barredo noted that the drop in oil prices may provide some tailwinds as it helped soothe inflation concerns and possibly interest rates.

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