Stocks rise on hopes of rate hike pause

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The local stock market rose on hopes that the US Federal Reserve will soon pause its series of rate hikes. | ManilaBulletin READ:

The main index jumped 77.66 points or 1.18 percent to close at 6,684.35 with the Property sector leading the charge. Volume remained thin though at 683 million shares worth P4.54 billion as losers beat gainers by a hair at 97 to 96 with 45 unchanged.

“Investors continued to buy into market ahead of the Philippine CPI report tomorrow morning, and after the Fed hiked rates by another 25bps and investors’ fears of contagion in the regional bank space returned,” said Regina Capital Development Corporation Managing Director Luis Limlingan. He added that, “The FOMC hinted at a pause in the hiking cycle by removing ‘the committee anticipates that some additional policy firming may be appropriate’ from the post-meeting statement.”

Philstocks Financial Assistant Research Manager Claire Alviar said that, “Despite the Federal Reserve’s interest rate hike, the local bourse jumped as sentiment was boosted by the hint of the Fed to pause rate hike soon.” “Moreover, investors also anticipated that April’s inflation rate may come slower than March’s figure. Given these, the likelihood of the Bangko Sentral ng Pilipinas halting rate hikes has increased,” she noted.

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