Market bounces back after 5-day losing streak

The benchmark Philippine Stock Exchange index finally broke its five-day losing streak on Thursday after shares gained 54.57 points to 5,934.25, 0.93 percent higher than Wednesday’s close as investors hunt bargains.

Luis Limlingan, Head of Sales at Regina Capital, said investors positively reacted to the Bank of England’s pronouncement that it would purchase bonds to stabilize its currency and stifle inflation.

“This is a stunning reversal in the monetary tightening policies implemented this year by most central banks to stifle inflation. On the economic front, Initial jobless claims and more speeches from Federal Reserve leaders are due later today,” Limlingan said.

Locally, investors continued to make bets that the Bangko Sentral ng Pilipinas could fire an off-cycle rate adjustment amid a mounting global recession fear.

Meanwhile, Philstocks Financial, Inc. assistant manager for research and online engagement Claire Alviar noted that despite positive cues from the US markets overnight, the local bourse still failed to return above the 6,000 psychological level.

Upon closing yesterday, the market’s net value turnover returned to P5.00 billion, still lower than the P5.50 billion average for this month.

According to Alviar, the low turnover “implies that the rally was weak amid low market participation.”

Except for Services, which dropped by 0.89 percent, all sectors bounced back led by Holdings, which clocked in a 2.26 percent gain.

Among index members, SM Investments Corp. had the biggest gain, advancing 3.68 percent, while Converge ICT Solutions, Inc. lost the most by 4.97 percent.

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