Stocks bounce back as investors look for bargains

MANILA, Philippines — After two days into a tailspin, the local stock market recovered yesterday, rallying by 215.38 points or 2.72 percent to close at 8,124.45.

Similarly, the broader All-Shares gauge regained 101.11 points or 2.11 percent to end at 4,890.17.

Traders said investors returned to the market to hunt for bargains after the US Federal Reserve took a hawkish stance and the Bangko Sentral ng Pilipinas decided to keep rates steady.

The next move is to see if the 8,100 support level will hold its ground, traders said.

The sectoral indexes all closed in positive territory.

Total value turnover reached P8.37 billion as market breadth was positive, 122 to 75 in favor of advancing stocks, while 47 issues were unchanged.

“Locally, investors finally went on bargain hunting mode as the Fed raised interest rates as many predicted…The Federal Reserve hike of 25 basis points was as expected. It signaled that it could lift them at a slightly more aggressive pace in coming years to keep the strengthening economy under control. Fed officials said they would increase their benchmark federal funds rate to a range between 1.5 percent and 1.75 percent and indicated a total of three rate increases for this year,” said Luis Limlingan, managing director at Regina Capital.