PSEi rebounds as government mulls looser curbs

MANILA, Philippines — The market reversed its course yesterday, with the main index ending in the green, as prospects of further loosening COVID curbs in the capital prompted late buying on choice stocks.

The benchmark Philippine Stock Exchange index (PSEi) closed at 7,288.21, up 35.57 points or 0.49 percent, while the broader All Shares index rallied 16.97 points or 0.44 percent to finish at 3,864.48.

Total value turnover reached P6.278 billion. Market breadth, however, was negative as there were 96 losers to 82 gainers, while 52 issues were unchanged.

“Bargain-hunting on select blue chips lifted the market from support as risk appetite improves following the Department of Health statement that it is willing to consider lowering the alert level in NCR to Level 2,” AB Capital Securities said in a note.

Around Asia, however, most emerging stock markets ended sharply lower with investors bracing for US rate hikes.

Amid growing price pressures, central banks worldwide are beginning to either tighten policy or signaling a shift may be coming, leading to sharp falls in global stocks in recent days.

All eyes are on the US Federal Reserve, which concludes a two-day meeting on Wednesday, with investors waiting for any hint on the timing of interest rate hikes and the pace of the central bank draining its massive balance sheet.

Aside from worries that US rate hikes may lead to capital outflows from Asia’s riskier emerging markets, investors are also weighing a potential invasion of Ukraine by Russia and rising tensions with the West that may lead to higher oil and gas prices and further contribute to global price pressures.

“The volatility seems to have weighed on Asian equities this morning,” Maybank analysts said, referring to rising tensions and volatile moves on Wall Street overnight.