The local stock market on Tuesday sustained its recovery while investors expect good results from the two-day Federal Open Market Committee (FOMC) meeting, which started at 2 a.m. also on Tuesday Manila time.
Analysts believe that the FOMC meeting is expected to set the mood of the local stock market today as well as in the next few days.
On Tuesday, the benchmark index went back to the 6,500-point level, extending its run to a third day.
According to Jun Calaycay, analyst at Accord Capital Equities Corp., the positive trend in the local market was influenced by a similar move in US equities overnight, as investors began to place bets on the Federal Reserve’s meeting.
BDO Unibank Inc. Chief Market Strategist Jonathan Ravelas agreed with Calaycay, citing that bargain hunting on selected counter, which was backed up by the anticipation on the FOMC meeting, helped push shares higher.
“Positive sentiment in the global market continues to influence us. News on strong OFW [overseas Filipino workers]remittances contributed to the renewed confidence,” Astro Del Castillo, First Grade Finance managing director, added.
Calaycay further said that trades will remain sensitive to what it perceives as threats to the flow of liquidity, which in turn is highly dependent on the conclusion of the Federal Reserve’s two-day meeting.
On the domestic front, he said that the government continues to leave its targets untouched, confident of the strong economic numbers, and remaining unfazed and unnerved by the recent volatility in global stock markets.
“We share in this confidence and place this on top of the trading decision table. In fact, most international agencies and market and credit watchers have kept their projections, or if any adjustments have been made at all, this toward better numbers,” he added.
The Philippine Stock Exchange index (PSEi) went up further by 2.83 percent, or 179.36 to 6,518.77.
The PSEi deviated from the regional trend, and breached the 6,500-point line at the noon break, regaining nearly one-third of its aggregate losses over the four-week slump. It held that through the final half of the day to lead regional stock markets.
The wider all-shares index improved 2.26 percent or 88.99 points to 4,031.42.
All the sectors likewise registered significant improvements with holding firms going up by 3.80 percent or 213.91 points to 5,845.23, followed by the property counter, which gained 2.46 percent or 63.12 points to 2,630.25.
Moreover, financials gained 2.24 percent or 36.11 points to 1,650.55, while services improved 2.27 percent or 43.45 points to 1,961.21. Mining and oil climbed a bit by 1.12 percent, or 173.04 points to end at 15,667.93, next to industrial, which went up 2.18 percent or 214.92 points to 10,060.58.
Value turnover, however, remained lethargic, falling short of the P7-billion mark at the run-off or trading-at-last stage.
Advancers dominated against losers, 107 to 50, while 46 shares were unchanged.
Some of the most actively traded stocks were Alliance Global Group Inc., SM Prime Holdings Inc., Universal Robina Corp., Philippine Long Distance Telephone Co., and Metropolitan Bank and Trust Co.
On Monday, the benchmark index entered its second day of recovery after registering its steepest decline in the previous week, which left appetizing share prices for investors. This eventually resulted to bargain hunting.
The benchmark index registered a 1.56-percent improvement or 97.15 points to close at 6,339.41. The wider all-shares index also improved, rising 1.15 percent or 44.67 points to 3,942.43.