The local stock market regained some lost ground as investors were cheered by higher US stocks after the Fed cited lower consumer prices.
The main index rose by 41.82 points or 0.61 percent to close at 6,923.08 as the Mining and Oil sector led the advance while Conglomerates lagged behind. Volume was low at 1.15 billion shares worth P6.28 billion as gainers outnumbered losers 115 to 66 with 53 unchanged.
“Philippine equities rose, following Powell's speech on easing inflation,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “Investors now await wholesale inventories data, and the speeches of Fed high rank members. The discussions will be mainly about the central bank's plan on monetary tightening to tamp down inflation.”
Philstocks Financial Assistant Research Manager Claire Alviar said that, “After the two consecutive days of market decline, the local bourse bounced as the employment rate in the country remains strong at 95.7 percent, despite being slightly lower than November’s 95.8 percent.”
“Moreover, Fed Chair Jerome Powell’s acknowledgement that the inflation rate in the US is declining helped boost the sentiment as this could be a sign that the Federal Reserve may soon pause its rate hikes,” she added.