Stocks climb as investors take cue from Wall Street

AdChoiceTV News — Stocks continued to post modest gains yesterday as investors decided to hunt for bargains, mostly blue chips, battered by heavy selling pressure the past few days.

The benchmark Philippine Stock Exchange index or PSEi closed higher for the third consecutive day at 6,630.85, adding 64.02 points or 0.97 percent.

The broader All Shares index also rose, advancing 40.31 points or 1.01 percent to 4,005.09

Total value turnover reached P8.853 billion. Market breadth was positive with 149 gainers to 64 losers, while 41 issues were unchanged.

Robert Chan of Robert Chan International Ltd the mother company of Chan Tayag Southeast Equities said local shares closed considerably higher yesterday after the US Federal Reserve said it sees no rate hikes through 2023 and that it will let inflation run hotter than usual to ensure a full economic recovery.

“The FOMC made modest changes to the post-meeting statement and left the funds rate target range unchanged at zero to 0.25 percent at the March meeting. The March projections suggested that several FOMC participants have a higher inflation bar for liftoff than 2.1 percent,” he said.

Asian stock markets also followed Wall Street higher yesterday after the US central bank said its key interest rate would be kept near zero through 2023.

The Fed’s promise to keep rates near rock bottom came even as it forecast this year’s economic growth will rebound to 6.5 percent — its strongest since the 1980s — and inflation will climb above two percent for the first time in years.

Reporting by Albert Rovic Tan

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