Stocks climb ahead of US Fed meeting

MANILA, Philippines - Share prices closed higher yesterday ahead of next week’s meeting of the US Federal Reserve.

The Philippine Stock Exchange index (PSEi) rose 17.84 points, or 0.25 percent, to finish at 6,911.38. Similarly, the broader All Shares index inched up 9.30 points, or 0.23 percent, to finish at 3,963.65.

April Lee Tan, head of Research at COL Financial Group Inc., said the market expects the US Fed to raise rates. “It’s really just a question of when,” Tan said.

Tan said the market might even be disappointed if the increase is delayed considering that investors already expect a US rate hike.

Lee said the Philippine stock market remains attractive.

“Liquidity conditions remain favorable for stocks. The Philippines has one of the best fundamental long term stories globally,” Tan said.

She stressed the current slump is just a major correction and not a bear market.

Investors, she added, could take advantage of the ongoing weakness as an opportunity to buy values.

“We believe investors can already start accumulating stocks although we advise investors to use peso cost averaging as markets are expected to remain volatile,” Tan said.

PLDT,  SM Prime, GTCAP, Meralco and Metrobank all posted modest gains.