Positive data projection boosts market growth

Investors drove the local stock market higher yesterday, as they anticipated positive signs of rate cuts both domestically and internationally. The Philippine Stock Exchange index (PSEi) rose by 64.09 points or 0.97 percent to close at 6,682.78, while the broader All Shares index increased by 24.55 points, or 0.7 percent, to end at 3,548.7.

Investors are hopeful that upcoming economic data releases in the US and Philippines will work in their favor. They are particularly keen on the minutes from the May meeting of the Federal Open Market Committee, as well as reports on home sales and durable goods orders in the US.

Luis Limlingan, head of sales at Regina Capital Development Corp., noted that investors are also awaiting the release of the budget balance report for April in the Philippines. Historically, April tends to show a surplus due to the tax filing deadline.

All sectors in the PSEi experienced growth, with mining and oil registering the largest gain at 4.95 percent or 458.16 points. Investors are gearing up for a week filled with key economic data releases, including reports on existing home sales and durable goods orders in the US, as well as the University of Michigan report on Friday. On the home front, the focus will be on the April budget balance report set to be released on May 24.

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