Stocks open higher, regaining week-long losses

MANILA, Philippines — The Philippine stock market rallied yesterday, recovering from last week’s bloodbath amid a recovery in the US stock market.

The benchmark Philippine Stock Exchange Composite index rose by 1.93 percent or 122.95 points to close at 6,5012.12.

“Local market rebounded as bargain hunting on battered down heavyweights such as SMIC, SM Prime and JG Summit, pushing the index in positive territory,” AB Capital Securities said.

The sectoral gauges finished higher with property, holding firms and services among the biggest gainers.

Total value turnover reached P8.06 billion. Market breadth was positive, 118 to 79 while 43 issues were unchanged.

“Philippine shares bounced back following the relief rally last week of the US, preventing the S&P 500 from tumbling into the bear market territory,” said Luis Limlingan of Regina Capital.

Asian shares mostly rose yesterday as investors eyed surging energy costs and prospects for interest rate hikes in the US.

Benchmarks edged up in Japan, Australia and South Korea. Shares rose in Hong Kong but declined in Shanghai.

Some analysts worry that if the US Federal Reserve raises interest rates too quickly or by too much that could set off a recession. A slowdown in the US would almost certainly hurt the Asian region, which exports and manufactures goods for the US economy.

The Fed has said it would continue to raise interest rates to temper rising inflation. The benchmark short-term interest rate was at a record low of near zero during much of the coronavirus pandemic.