The local stock market recovered the previous day’s loss and resumed climbing as investors hope for signs of a September cut by the US Federal Reserve.
The main index added 61.34 points or 0.89 percent to close at 6,961.96 as Banks surged while the Property and Mining counters were in the red. Volume improved to 640 million shares worth P6.93 billion as gainers outnumbered losers 117 to 80 with 43 unchanged.
“Local shares concluded the shortened trading week in the green after the Fed’s July meeting minutes indicated a potential rate cut in September, boosting investor optimism,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Most Fed officials signalled that easing monetary policy would be appropriate if economic data meets expectations, raising hopes for lower interest rates soon.
"All eyes are now on Fed Chair Jerome Powell, who is set to speak at the Jackson Hole Economic Symposium on Friday, potentially offering further guidance on the Fed’s next steps.“
Philstocks Financial Research Manager Japhet Tantiangco said "The local market bounced back this Thursday. Investors took cues from Wall Street’s rally overnight driven by the Federal Reserve’s July minutes of the meeting which hinted of possible rate cuts by September. Investors also cheered the strengthening of the local currency."