The main index snapped its six-day losing streak on Thursday, May 24, accelerating after the United States Federal Reserve announced its policy of gradual interest rate hikes for the rest of the year.
The bellwether Philippine Stock Exchange index went back to the 7,600 level, climbing 1.22% or 92.06 points to finish at 7,652.53 yesterday. The broader all-shares index likewise rose 0.77% or 35.35 points to close at 4,647.35.
“Philippine stocks recovered to end the session higher, after the Federal Reserves’ May 2 meeting confirmed that policy makers support a June rate increase and are maintaining a calm attitude about the inflation outlook,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
The US Fed released the minutes from its May meeting on Wednesday, which included hints of a possible rate hike at their June meeting.
“There was bargain hunting after the Fed released its minutes of the meeting that they will pursue a gradual interest rate increase policy, which is favorable to emerging markets like the Philippines. This resulted in the appreciation of the peso, and the lowering of the 10-year US yields to less than 3%,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview.
Mr. Pangan added that the news of more rate hikes improved the positive sentiment among local investors.
Four sectoral indices were gainers, led by financials which jumped 2.28% or 42.19 points to 1,894.05. Holding firms advanced 1.26% or 93.27 points to 7,474.32, while property added 0.96% or 36.35 points to 3,838.13. Services also went up by 0.31% or 4.62 points to 1,518.91.
Meanwhile, the mining and oil counter lost 2.49% or 247.68 points to 9,710.33, after Semirara Mining and Power Corp dropped 2.59% or 75 centavos to close at P28.20 each. Industrial was also down by 0.09% or 9.99 points to 10,895.03.
Some 1.72 billion issues switched hands, for a total turnover of P6.23 billion.
Decliners still trumped advancers, 109 to 74, while 57 issues closed flat.
Foreign investors remained sellers, although net sales slimmed to P131.27 million, from P649.85 million in the previous session. — Arra B. Francia

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