The exchange encourages looser restrictions; SPNEC climbs

Share prices rose on Wednesday due to falling COVID-19 cases and the capital region’s return to less rigid lockdown measures.

The Philippine stock index jumped 97.34 points, or 1.3% to 7,458.99 on a turnover of 7.8 billion pesos. The winners beat the losers, 123 to 81, with 47 numbers unchanged.

Solar Philippines Nueva Ecija Corp., which is building what it is billed as Southeast Asia’s largest solar farm, rose 4.5% to P2.32, while Bank of the Philippine Islands, the third-largest bank by assets, added 2.6 percent to P100.60.

Sy Group’s BDO Unibank Inc., the largest bank, climbed 3.5% to P139.70, while sister company SM Prime Holdings Inc. rose 3.1% to P36.20.

The rest of Asian stocks benefited from a rally in global markets on Wednesday as investors worried less about the Federal Reserve’s plans to tighten monetary policy, while stronger corporate results boosted optimism. about the prospects.

And while there remains a lot of volatility and uncertainty on trading floors due to geopolitical tensions and the Omicron spread, analysts remain optimistic for the year.

With much of the region still closed for the Lunar New Year holiday, business was again weak, although markets that were open benefited from strong buying interest following an upbeat performance in Europe and At New York.

Tokyo, Sydney, Wellington and Jakarta all rose by more than one percent, while Mumbai and Bangkok also saw gains.

After a torrid January, global markets have rallied strongly in the past three days, with commentators saying the selloff may have gone too far and traders were buying bargains.

The positive mood was helped by positive economic readings and comments from Fed officials indicating that the bank should be considered in its tightening cycle, with recent suggestions of a 50 basis point hike in March being considered too harsh, too soon.

Market strategist Louis Navellier said the remarks rekindled belief that the Fed was always ready to step in to support markets if they suffered too much.

Still, the idea of ​​five or six increases before 2023 has been mooted repeatedly as policymakers struggle to rein in high inflation for four decades.

Observers remain optimistic.

“Fed tightening is always the way to go,” said Dennis DeBusschere of 22V Research. “But a near-term rebound in equities will continue, driven by growth and cyclicals, as investors focus on a ‘spike tightening’ narrative ahead of what will likely be a weak payrolls report.”

Carley Garner, founder of DeCarley Trading, told Bloomberg Television that while “stocks probably have a bit more pullback before finding a bottom,” she believes 2022 will still end on a healthy note for investors.

This will “probably be the year to buy a big dip across the board: Treasuries, stocks, commodities, everything,” she said.

Traders are now bracing for policy decisions from the Bank of England and the European Central Bank later in the week, while the release of US jobs data on Friday will provide the latest insight into the biggest economy. of the world.

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