Stocks extend gains after Fed assurance

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The local stock market rose further after the US Fed assured that it will not be aggressive in raising rates as many fear.

The main index rose 66.19 points or 0.97 percent to close at 6,868.92 as the Mining and Oil counter surged and led gains across the board. However, volume dipped to 1 billion shares worth P5.68 billion as gainers beat losers 140 to 59 with 37 unchanged.

“Local and regional equities went on a relief rally as the Fed announced a widely anticipated 50 bps rate hike during its policy setting meeting yesterday,” said Regina Capital Development Corporation Managing Director Luis Limlingan. He added that, “The Wednesday moves also came on the back of Fed Chair Jerome Powell’s statement ruling out a 75 bps rate hike in future meetings.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market extended its rally on the back of the positive spillovers from Wall Street.“ He noted that, “This came as Federal Reserve Chairman Jerome Powell said that policy rate hikes more aggressive than their latest 50 basis point increase is not under consideration, tempering worries of a higher interest rate hike in their succeeding meetings.”

 

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