PH stocks rise; peso at 56.33 per US dollar

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Both the Philippine stocks and the peso advanced Thursday, ahead of a long weekend break. Financial markets will be closed Friday and Monday.

Stock value turnover reached P4.95 billion. Foreign investors were net buyers, with net inflows amounting to P2.34 billion. The readings reinforced optimism that the central bank will begin unwinding its long-running monetary tightening campaign, with analysts saying the main debate is over how big the move will be and how many more will follow.

The reading rammed home the fact that the labour market had softened — at the same time inflation was coming down — enough for decision-makers to begin lowering borrowing costs. Investors are pricing more than one percentage point of cuts by the end of the year, according to Bloomberg News. Independent analyst Stephen Innes warned the jobs revision was close to “the worst case scenario” and a “wake-up call”.

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