Philippine stocks rise on bargain hunting

MANILA, Philippines — The Philippine stock market sustained its upward trajectory as investors continued to gobble up bargains.

The benchmark Philippine Stocks Exchange index (PSEi) ended in positive territory for the second straight day, closing at 6,253.18 or an increase of 44.35 points or 0.71 percent.

Likewise, the broader All Shares index gained 15.44 points or 0.47 percent to end at 3,330.04.

Total value turnover was P4 billion.  Market breadth was positive, 93 to 77.

Analysts said investors scooped up some bargain stocks amid the prospect of an end to US interest rate hikes.

Meanwhile, shares slipped in Asia yesterday, tracking a decline on Wall Street a day after stockshit their highest level since the start of August.

Trading is tapering off ahead of holidays in the US and Japan on Thursday, with few data releases to drive activity.

US home sales fell more than four percent in October, while minutes from the latest policy setting meeting of the Federal Reserve showed the central bank in a holding pattern as it assesses the impact of its aggressive interest rate hikes on inflation and the economy overall.

Stocks have gained recently on rising hopes that inflation has cooled enough to make the Federal Reserve’s next move on interest rates a cut rather than a hike.

The Fed’s main interest rate is at its highest level since 2001 as it tries to slow the economy and hurt investment prices just enough to smother inflation without causing a painful recession.

Deutsche Bank expects the US economy to fall into a mild recession early in 2024 and the Fed to begin cutting rates in June. The rest of Wall Street is split on whether a recession could occur as the job market and inflation slow under the weight of high rates and yields.

The yield on the 10-year Treasury was steady at 4.41 percent, where it was late Tuesday. Just a few weeks ago, it was above 5 percent, at its highest level since 2007 and undercutting prices for stocks and other investments.