US Fed comment on interest rates buoys stocks

MANILA, Philippines - Local stocks bounced back in tandem with rebounds in overseas markets that took comfort from US Federal Reserve’s commitment to maintain low borrowing rates.

The Philippine Stock Exchange index recovered 0.48 percent or 33.42 points to 6,937.21, snapping a two-day decline, while the broader all shares index added 0.43 percent or 17.88 points to finish at 4,156.60.

Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview that the local bourse again tracked the global markets, which regained some losses following the release of the minutes of the most recent US Fed policy meeting.

“And if you look at the selloff, the value is small. Investors really committed their long term money in the Philippines market,” Del Castillo said.

On Wednesday, Wall Street regained its composure after the US Fed detailed its plans on concluding the easy money policy. However, the US Fed said it is not in a hurry to jack up interest rates.

The Dow Jones Industrial average picked up 0.47 percent or 78.99 points to 16,985.61 while the broader Standard & Poor’s 500 index rose 0.46 percent or 9.12 points to 1,972.83.

Most Asian markets posted gains yesterday following the assurance of a slow end to the loose monetary policy. Hong Kong’s Hang Seng index inched up 0.27 percent or 62.92 points to 23,238.99.

At home, all counters, save for financial firms that barely fell 0.01 percent or 0.12 point to 1,665.81, were in the green. The advancers were led by the property sector that climbed 1.13 percent or 29.74 points to 2,669.03.