Shares buoyed by bets US Fed may end hawkish cycle
Philippine shares rallied on Tuesday amid gains across the region and Wall Street on bets the influential US Federal Reserve would slow aggressive interest rate hikes to avoid a recession. The Philippine Stock Exchange Index jumped 3.54 percent, or 204.57 points, to 5,987.72, while the broader All Shares Index added 3.09 percent, or 96.35 points, to 3,210.48.
The benchmark measure, which remains in bear market territory, pushed higher after briefly slipping below the 5,700 level on Monday.
US stocks advanced overnight after disappointing manufacturing data raised hopes the Fed would shift from its tightening cycle to support economic growth. The Bangko Sentral ng Pilipinas separately warned speculators against taking advantage of volatile currency markets as the Philippine peso traded near its low of P59 against the greenback. All local stock exchange subsectors rose on Tuesday, led by holding firms and property, up 4.73 percent and 4.19 percent, respectively.
Mining and oil also rallied 3.75 percent, followed by industrials, up 3.63 percent; services, up 1.47 percent; and financials, up 1.44 percent.
Trading volume was relatively thin with 514.2 million shares valued at P4.59 billion changing hands, indicating that many investors remained on the sidelines during the recent leg-up. On the other hand, foreigners were net sellers to the tune of P96.45 million on Tuesday, stock exchange data showed.
International Container Terminal Services Inc. was the top traded stock as it rose 1.35 percent to P165 per share.
Article continues after this advertisementIt was followed by BDO Unibank Inc., up 1.44 percent to P113; SM Investments Corp., up 4.47 percent to P794; Ayala Land Inc., up 4.57 percent to P24.05; and San Miguel Corp., down 0.15 percent to P96.65 per share.
SM Prime Holdings Inc. was up 4.58 percent to P32; Ayala Corp., up 4.71 percent to P645; GT Capital Holdings Inc., down 1.44 percent to P410; Jollibee Foods Corp., up 2.48 percent to P240; and Universal Robina Corp., up 4.41 percent to P116 per share. Overall, there were 140 advancers against 60 losers while 40 companies closed unchanged.
