The local stock market recovered some of the previous day’s losses and returned above the 7,000 level as investors found prices of heavyweights too low to resist.
The main index jumped 202.97 points or 2.98 percent to close at 7,019.92 with the Property and Banking sectors leading the advance although Mining and Oil stocks fell. Volume rose to 3.61 billion shares worth P9.61 billion as losers still beating gainers at 138 to 76 with 36 unchanged.
“Investors turned into bargain hunters with many looking ahead to the Federal Reserve's next monetary policy decision later this week amid an ongoing war in Ukraine and soaring inflation,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “Consensus expects the Fed to raise its target fed funds rate by a quarter-percentage point from zero at the end of its two-day meeting on Wed. The move was also influenced by the resumption of talks between Ukraine and Russia, sending commodities prices lower.”
“Meanwhile, at home, many shares neared oversold levels, signaling buying opportunities for those looking to come into the market,” Limlingan added.
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Bargain hunters took opportunities out of Monday’s steep decline which even got extended in Tuesday’s morning session.”
He added that, “The sustained decline in the country’s new COVID-19 infections with March 7 to 13’s additional cases amounting to 4,131, down by 35 percent week-on-week, gave market sentiment a boost.“