Index snaps 3-day losing streak in technical rebound

Share prices closed 0.9 percent higher yesterday, snapping a three-day losing streak in a technical rebound inspired by the overnight upturn on Wall Street, dealers said.

However, volume was thinner than usual, with investors waiting for decisions on interest rates by the US Federal Reserve and the local central bank as well as their accompanying policy statements, they said.

The composite index rose 18.55 points at 2,084.62 after trading between 2,068.32 and 2,090.68. Volume was 352.15 million shares worth P899.52 million ($16.7 million).

The broader all-shares index gained 10.77 points at 1,324.44.

Gainers outnumbered losers 44 to 18, with 51 stocks unchanged.

"Stocks have reached oversold levels so selected issues are slowly being accumulated," Nestor Aguila of DA Market Securities said.

The main index lost a cumulative 2.2 percent of its value during the three-day sell-off starting Monday.

Dealers said while there is some anxiety the US Federal Reserve may take a hard line on inflation at its meeting, investors are coming to terms with the likelihood of hikes of 25 basis points now and in August.

"The premise of global fund managers is that another US rate hike, aside from the one expected in a few hours, is going to happen. Investors are slowly getting close to discounting these," Aguila said.

Meanwhile, the Central Bank of the Philippines is widely expected to keep its benchmark overnight rates unchanged for a ninth straight month.

Its overnight borrowing rate stands at 7.50 percent and its overnight lending rate at 9.75 percent.

"We concur with the strong consensus forecast of a no-change outcome in the Central Bank of the Philippines’ monetary policy meeting. Inflation pressure seems contained," ING regional economist Tim Condon said.

Philippine Long Distance Telephone Co. (PLDT) was the top-traded stock, ending up P20 at P1,740. Globe Telecom rose P10 at P910.

Ayala Corp. advanced P10 to P350 while property unit Ayala Land was steady at P11.

Bank of the Philippine Islands shed 50 centavos to P45.50.

San Miguel saw its A shares remain steady at P65 while its B shares slipped 50 centavos to P72. – AFP