Stocks jump on rates, COVID news

Published January 12, 2022, 4:17 PM

by James A. Loyola

The local stock market jumped on positive news here and abroad.

The main index rose 129.44 points or 1.83 percent to close at 7,215.13 as the Property and Mining and Oil counters led gains across the board. Volume was lower though at 854 million shares worth P5.95 billion as gainers swamped losers 133 to 49 with 50 unchanged.


“Investors turned bargain hunters in the Philippines as the 10-year treasury yield cooled, sending major US benchmarks to edge higher,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The absence of an ‘accelerated change in policy’-statement on Fed Chairman Jerome Powell’s testimony before a Senate panel also boosted the market’s appetite for risky assets.”

Back home, the BSP hinted at an unlikely policy rate hike in the first half of the year.

AB Capital Securities said “The stock market surged on the back of big banks (and their respective conglomerate parents) after the BSP released data showing that bank NPL ratios improved in November.”

It noted that, “The market was likely buoyed by independent research indicating that the latest surge of new COVID-19 infections may have reached its peak.”