Stocks rally as Fed to slow tightening pace

The local stock market rallied on news that the US Federal Reserve may no longer need to raise rates as aggressively in the near term.

The PSEi shot up by 142.50 points or 2.29 percent to close at 6,379.26 as Banks and Conglomerates led the charge. Volume improved but remained thin at 567 million shares worth P4.73 billion as gainers swept losers 140 to 50 while 40 were unchanged.


“The local bourse notched a winning session, following a widely expected 75bp rate hike from the Fed. Chairman Jerome Powell hinted that the central bank could slow the pace of tightening by the next policy meeting,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Investors also cheered on his statement that the U.S. economy hasn't entered a recession.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The International Monetary Fund’s upgrade of its Philippine economic growth forecast for 2022 from 6.5 percent to 6.7 percent also helped the market.“