Stocks rise in hunt for bargains

Manila, Philippines – Stocks rallied for a second day, albeit modestly, as investors hunted for bargains after last week’s selloff.

But it’s not the foreigners that are picking up Philippine stocks, with net foreign selling of nearly half a billion pesos, or P478 million, logged at the close of Wednesday’s trade.

The Philippine Stock Exchange index (PSEi) last settled at 5,963.77, a tad 0.18 percent one-day gain.

“Hopes of a Federal Reserve rate cut and solid agreement between the US and China in their talk this week provided support to the rise,” equities trader PhilStocks Financial said in a research note.

“The peso's rebound today also helped,” it added.

The peso has come off its historic low to return to P58-per-dollar level on Wednesday, Oct. 29, but not after heavy beating in morning deals that sent it tumbling to a new record low of P59.26 against the greenback.

“The Philippine market ended higher as traders took advantage of the cheaper prices. Moreover, the PHP noticeably appreciated against the USD,” brokerage firm Regina Capital said.

The market – both equities and currencies – priced in more rate cuts by the US Federal Reserve which wraps up its meeting late Wednesday.

Four stocks gained for every 3 that lost, while 61 did not move.

NewsWatch Plus business news anchor Lois Calderon contributed to this story.