Market grows on positive data projection in Philippines

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Investors went on a buying spree to power up the local stock market yesterday, anticipating positive hints of rate cuts both here and abroad.

The Philippine Stock Exchange index (PSEi) picked up by 64.09 points or 0.97 percent to reach 6,682.78, while the broader All Shares index gained by 24.55 points, or 0.7 percent, to settle at 3,548.7.

Investors expect economic data to be released here and in the US will favor their odds, and they also await the release of the minutes of the May meeting of the Federal Open Market Committee to see whether rate cuts are on the horizon.

Luis Limlingan, head of sales at Regina Capital Development Corp., said investors are watching out for the release of home sales reports and durable goods orders in the US.

At home, he said are looking forward to the budget balance report for April, a month that historically sways to surplus with the deadline for tax filings.

'Philippine shares bounced back from the previous session's weakness, as the equities market is gearing up for another eventful week. The key economic data releases this week are the existing home sales report on Wednesday, as well as the durable goods orders report and the University of Michigan report on Friday,' Limlingan said.

'Here at home, it is relatively less data heavy, with April's budget balance to be released on May 24 as the sole economic data being awaited by investors,' he added.

The PSEi saw all of its sectors grow yesterday, with mining and oil gaining the largest at 458.16 points, or 4.95 percent.