By Arra B. Francia, Reporter
The main index recovered from its slump on Thursday, March 22, as investors went on bargain hunting following the US Federal Reserve’s announcement of its first rate hike for the year.
The 30-company Philippine Stock Exchange index (PSEi) jumped 2.72% or 215.38 points to finish at 8,124.45 on Thursday, snapping a three-day decline that placed the market more than 12% behind its all-time high. The all-shares index also gained 2.11% or 101.11 points to 4,890.17.
“I think that this 215-point rally of the PSEi today was a mixture of bounce plays by market participants and the end of speculation about the move of the US Federal reserve after it finally decided to raise rates a few hours ago,” Timson Securities, Inc. equity trader Jervin S. De Celis said in a mobile phone message.
The US Fed had raised interest rates by 25 basis points to a target range of 1.5% to 1.75%. The body also hinted at two more rate hikes for the year.
“Since the index plunged by as much as 6% for the month of March alone due to rising local inflation and rate hike fears, these news may have urged investors to buy stocks at bargain prices after the local bourse touched the 7,900 level yesterday,” Mr. De Celis added.
Regina Capital Development Corp. Managing Director Luis A. Limlingan also noted that some investors are expecting the Bangko Sentral ng Pilipinas to keep rates unchanged after its policy meeting on Thursday.
All sectoral indices ended on a positive note, with the property sector gaining the most at 3,703.77, up 4.3% or 152.78 points. Holding firms followed with an increase of 2.93% or 230.38 points to 8,088.56. Mining and oil rose 2.32% or 248.42 points to 10,939.62; services climbed 1.87% or 31.30 points to 1,703.50; industrial added 1.36% or 153.04 points to 11,379.83; while financials had an uptick of 1.12% or 23.23 points to 2,092.61.
