Stocks rebound on rate hopes
Moody’s Analytics sees the BSP to stay with its aggressive battle against soaring inflation
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Daily TribuneMoody’s Analytics sees the BSP to stay with its aggressive battle against soaring inflation
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Shares ended the day with a modest rebound ahead of another rate hike from the US Federal Reserve.
The Federal Open Market Committee will kick off its two-day meeting on Tuesday. Pundits bet that the central bank will adjust the benchmark rate by 75 basis points on Wednesday.
The barometer Philippine Stock Exchange index ended a five-day losing streak after it gained 11.04 points on Tuesday, up by 0.17 percent to 6,448.46 from Monday's close.
Meanwhile, Moody's Analytics sees the BSP to stay with its aggressive battle against soaring inflation, Regina Capital Development Corp. managing director Luis Limlingan said.
In line with this, it expects the central bank to push the benchmark rate by another 50 bps to 4.25 percent on 22 September.
On the data front, investors will get a fresh look at the housing market with the August reports for housing starts and building permits.
Oil rose on Monday as supply woes outweighed fears that global demand could slow due to a strong greenback and possibly large interest rate increases.
Brent crude edged 0.51 percent higher to $91.82 per barrel, while the US West Texas Intermediate crude futures closed at $85.53 per ounce, up 0.49 percent.
Strong bargain hunting
Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said the market's performance was driven by investors' bargain hunting near the 6,400 support levels.
"Along with other markets, the local bourse also took cues from the US markets' positive performance overnight," Alviar said.
By afternoon yesterday, most Asian peers were in the green, following the US markets while waiting for the meeting of the Federal Reserve.
Upon closing, the local bourse's net market value turnover was at P4.62 billion; foreigners were net sellers amounting to P191.98 million.
Except for Holdings, which fell by 0.40 percent, all sectors were in the green territory led by the financials, advancing 0.80 percent.
