The Philippine Stock Exchange index (PSEi) whipsawed back above 7,000 on Wednesday as bulls charged into the market, erasing most losses so far this week.
The benchmark measure jumped 3.57 percent, or 242.51 points, to 7,035.76 while the broader All Shares index added 2.7 percent, or 96.77 points, to 3,687.17.
Stocks bounced from a more than 250-point drop recorded in the past two sessions. The selldown early this week was triggered by profit taking ahead of the influential US Federal Reserve’s interest rate setting meeting.
“On Wednesday, the Federal Reserve will announce how much it is increasing interest rates in its latest effort to tame high inflation,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Wednesday.
“Markets are expecting a 25 [basis point] bump from the Fed. They will announce [a] decision on Wednesday afternoon, followed by chair Jerome Powell’s comments,” he added.
The market was also weighed down by worries that elevated inflation would hurt Philippine consumer spending as the postpandemic “base effect” of the previous year wanes.
Philippine Stock Exchange (PSE) data showed 1.1 billion shares valued at almost P9 billion changing hands while foreign buyers ended with net purchases of P763.97 million.
All PSE subsectors rallied, with services taking the lead with a 4.34-percent gain, followed by holding firms (+3.69 percent), industrial (+3.14 percent), property (+2.79 percent), financials (+2.74 percent) and mining and oil (+0.73 percent).
BDO Unibank Inc. was the top traded stock as it added 1.95 percent to P125.20 per share.
It was followed by Ayala Land Inc., up 4.10 percent to P30.50; International Container Terminal Services Inc., up 5.4 percent to P218.60; PLDT Inc., up 6.41 percent to P1,428; and SM Investments Corp., up 2.83 percent to P946.
Union Bank of the Philippines was up 0.36 percent to P97; SM Prime Holdings Inc., up 2.30 percent to P37.75; GT Capital Holdings Inc., up 2.94 percent to P525; Universal Robina Corp., up 4.86 percent to P144.50; and Converge ICT Solutions Inc., up 3.89 percent to P18.16.
Overall, there were 143 advancers against 49 losers while 43 companies closed unchanged, stock exchange data showed.