Stocks halt losing streak, still below 6,000 mark

MANILA, Philippines — The stock market ended its losing streak yesterday as investors returned to hunt for bargains, mirroring gains in other Asian equities following the UK central bank’s move to halt a possible economic crisis.

The benchmark Philippine Stock Exchange index (PSEi) closed 54.57 points or 0.93 percent higher to end at 5,934.25, still within two-month lows.

Likewise, the broader All Shares index gained 25.24 points or 0.80 percent to close at 3,190.88.

Although it was not enough to bring the index back to the 6,000 mark, traders said yesterday’s bounce was a good start for a possible climb as the holiday season nears.

Total value turnover reached P5.19 billion, with foreign funds turning into net sellers at P491.71 million. Market breadth was positive, 121 to 76, while 42 issues were unchanged.

“Philippine shares snapped their losing streak, rebounding substantially on the Bank of England’s remarks that it would purchase bonds to stabilize its currency and stifle inflation,” Regina Capital said in a note.

In Europe, stocks tumbled Thursday and Asian markets were mixed after British Prime Minister Liz Truss defended a tax-cut plan that rattled investors.

Stocks and the British pound fell Tuesday on fears Trusss tax cuts would push up already high inflation. Markets rebounded Wednesday after the Bank of England said it would buy government bonds to stop a price slide.

Markets fell back Thursday after Truss shrugged off criticism and a public appeal by the International Monetary Fund to scrap the tax cut plans. Truss said she is willing to make “difficult decisions” to get the economy growing.

“The UK government needs to offer a credible fiscal plan to complement the BoE’s financial stabilization in a way that supports long-term growth without boosting inflation expectations,” David Chao of Invesco said in a report.

Forecasters see more turbulence ahead due to worries about a possible recession, higher interest rates and even higher inflation.

Investor increasingly worry aggressive interest rate hikes this year by the US Federal Reserve and central banks in Europe and Asia to cool inflation that is at multi-decade highs might tip the global economy into recession.