Stocks rise back on jobs, trade reports

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The local stock market rose back to the 6500 level as investors cheered the stronger employment numbers and a lower trade deficit figure.

The main index added 57.48 points or 0.89 percent to close at 6,530.45 as the Services sector led the advance while the Mining and Oil counter lagged behind. Volume declined to 428 million shares worth P3.39 billion as losers outnumbered gainers 92 to 89 with 52 unchanged.

“Philippine stocks were bought ahead of the GDP release, as more earnings came out in line or above expectations, while other brushed off Moody's downgrade of several regional banks,” said Regina Capital Development Corporation Managing Director Luis Limlingan. He noted that, “Locally, with the reduction of imports coupled with flattish exports, trade deficit further narrowed for the third straight month in June. At the same time, preliminary data from the BSP showed that GIR stood at $99.7 billion in July--the highest in 2 months or since the $100.6 billion in May.”

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse gained as the Philippines’ employment rate remained strong in June, despite inching down month on month.” She added that, “Employment rate in June was at 95.5 percent, inching down a bit from May’s 95.7 percent but still higher compared to June last year’s 94.00 percent. “

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