PH stocks bounce back to 6,339.41, await US Fed Reserve move on bond-buying
MANILA, Philippines — Most local stocks firmed up for a second session in the row as regional markets stabilized ahead of a crucial US Federal Reserve open market committee meeting this week.
The main-share Philippine Stock Exchange index gained 97.15 points or 1.56 percent to close at 6,339.41 as investors awaited clues on whether the US Fed would scale back its aggressive bond-buying activities that have boosted emerging market assets in recent years.
Across the region, financial markets were mostly higher after last week’s bloodbath that priced in some probability that the US Fed would curb its liquidity-inducing bond buyback program.
There were 99 advancers versus 53 decliners at the market while 39 stocks were unchanged. Value turnover amounted to P6.98 billion.
Despite the index rebound, foreign investors were still in a net selling position, with foreign selling of P4.2 billion exceeding the net foreign buying of P3.69 billion for the day. Since Tuesday last week, some foreign investors have been unwinding local trades and converting into US dollars due to jitters over the US Fed’s monetary stance.
The US Federal Open Market Committee is set to meet this week (June 20) during which global markets await a clearer direction on US monetary policy.
At the local market, the day’s rebound was led by ALI (+6.12 percent), MWC (+5.71 percent) and Jollibee (+5.38 percent). SMC and RLC also benefited, both rising by over 3 percent while Megaworld, Ayala Corp., ICTSI, BPI and Metrobank all gained by over 2 percent.
On the other hand, the day’s lagger was Philex Mining (-2.37 percent) while AEV and JG Summit also fell by over 1 percent.
It was reported on Monday that Philex was seeking more time to meet conditions for rehabilitation.
