Stocks rebound as Wall Street bounces back

Local stocks bounced back yesterday to close the week on a positive note as the local bourse mirrored gains in the US market.

The Philippine Stock Exchange 1.27 percent or 84.24 points. index closed at 6,707.25, climbing by The broader All Shares index likewise jumped by 0.88 percent or 30.79 points to settle at 3,516.82.

“Philippine shares surged with Wall Street’s recovery following the Fed day sell-off,” Luis Limlingan of Regina Capital said.

On top of positive cues from the US markets overnight, Claire Alviar of Philstocks Financial said anticipation of full year 2023 earnings also helped buoy investor sentiment.

“Moreover, the sentiment was boosted by the expectation of a slower inflation rate this January,” she said.

Net market value turnover expanded to P5.60 billion from the previous day’s P3.64 billion.

Market breadth was positive as advancers edged out decliners, 98 to 76, while 56 issues were unchanged.

Around Asia, most markets also rose, tracking a surge on Wall Street fuelled by bargain-buying from the previous day’s selloff, while strong earnings from tech titans soothed worries about the impact of higher interest rates on bottom lines.

Disappointment over the Federal Reserve’s warning this week that borrowing costs would not likely be cut in March was tempered by the knowledge they are all but certain to come down this year.

Data indicating a softening US labor market – jobless claims rose and private-sector jobs creation came in below forecasts – added to the optimism that the central bank will move several times before 2025.

“Traders are not letting go of the possibility of an earlier-than-expected rate cut,” said Fawad Razaqzada of City Index and Forex.com.