Stock market advances; ICTSI, Globe lead gainers

STOCKS rose for a fourth day over speculations the US Federal Reserve may loosen its monetary tightening and following Wall Street’s rally on Friday.

The PSE index, the 30-company benchmark of the Philippine Stock Exchange, gained 15 points, or 0.24 percent, to close at 6,671.12 Monday, as four of the six subsectors advanced.

The broader all-share index also went up 8 points, or 0.24 percent, to settle at 3,573.06 on a value turnover of P4.75 billion. Gainers led losers, 102 to 83, while 45 issues were unchanged. Seven of the 10 most active stocks ended in the green, led by International Container Terminal Services Inc. which went up 3.50 percent to P207.00 and Globe Telecom Inc. which rose 1.30 percent to P1,874.00.

The peso was steady Monday and closed at 54.88 against the US dollar. Meanwhile, most Asian markets also traded higher. Traders in Tokyo appeared bullish about positive news flowing in from the United States, where Wall Street had rallied on Friday. An end-of-week slide in Treasury bond yields fortified beliefs the Federal Reserve was nearing the end of its ratehiking cycle.

The Nikkei 225 jumped more than one percent, with similar gains posted in Taipei, Seoul and Sydney. Federal Reserve Chair Jerome Powell is set to discuss monetary policy before the House and Senate committees on Tuesday, proceedings that will be scrutinized by investors seeking positive interest rate news.

Top Gainers

“Most important will be whether the Chair takes the opportunity to express a preference for sticking with a 25bp [basis points] hike in March or if he leaves the door ajar for returning to a faster pace this month,” said Stephen Innes of SPI Asset Management.

“If Powell does not slam the door shut on the potential for a larger hike, markets could put substantially more weight on a 50bp hike at the March meeting in response to last month’s hotter data.”

Traders are also awaiting US payroll data on Friday and the Bank of Japan’s two-day policy meeting from Thursday, which will be the last for governor Haruhiko Kuroda.

Hong Kong’s Hang Seng Index nudged up after a slow start, finishing the day slightly higher. Shenzhen also recovered to end flat, while Shanghai closed a shade lower after the uninspiring economic news from Beijing. With AFP

DURIAN FESTIVAL.

Participants parade with heaps of durians during the ‘Kenduren’ festival in Jombang, East Java on March 5, 2023. The annual festival, held as thanksgiving for the good harvest of the fruit, attracts many tourists from the region. Grown across tropical Southeast Asia, the durian is hailed as the “king of fruits” by its fans who liken its creamy texture and intense aroma to blue cheese, but many detractors liken their intense aroma to sewage or sweaty socks. AFP