Stocks inch up as investors scout for leads

MANILA, Philippines - Share prices managed to post gains yesterday after China’s better-than-expected quarterly growth figure revived expectations in financial markets for a US Federal Reserve rate hike.

The benchmark Philippine Stock Exchange index (PSEi) closed 5.99 points or 0.08 percent higher to end at 7,060.85 while the broader All Shares index finished at 4,063.70, up 4.33 points or 0.11 percent.  

The indexes closed mixed, with the Financials, Industrial, Mining and Oil and Property barometers finishing in negative territory while the Holding Firms and Services sub-sectors ended in the black. 

 Analysts said the market continues to wait for positive leads that would provide investor optimism, which in turn could bring the market to rally.  

Market investors are looking for signals from China, particularly how the world’s second-largest economy  would boost growth.

 On the local front, investors are also looking for clues on how the government would boost state spending.

 “The market closed flat as players continued to check for clues on how China would boost growth via fiscal and/or monetary measures, while some locals focus on fourth quarter spending prospects,” said Jason Escartin of F. Yap Securities.  

China’s gross domestic product expanded 6.9 percent in July to September, which is slightly higher than estimates.

 This boosted China’s stocks on Monday but analysts said investors would continue to look for clues from the government as the latest economic numbers still reflect the weakest pace since the global financial crisis.