Stocks extend gains for 5th straight day

MANILA, Philippines — Stocks extended their advance yesterday as investors continued to scout for bargains and reposition their portfolio following the reconstitution of the main index.

The benchmark Philippine Stock Exchange index or PSEi closed at 6,374.68, up by 110.74 points or 1.77 percent, while the broader All Shares index gained 51.50 points or 1.53 percent to finish at 3,412.38.

Total value turnover reached P6.726 billion. Market breadth was positive, 118 to 74, while 42 issues were unchanged.

Unicapital Securities said the PSEi extended gains as investors continued to bargain hunt below the 6,200 levels and also with the extra liquidity from tendered shares of Metro Pacific Investments Corp. at P28.42 billion, which were likely reallocated to other stocks.

There could be corrections after recent gains moving forward, Unicapital noted.

D.A. Securities also cited the index’s gains as likely due to bargain hunting and “as funds switched out of MPIC into PSEi’s 30 component stocks.”

Around Asia, markets mostly rose following hefty recent losses but traders remain consumed by worries over the economy as the Federal Reserve considers hiking interest rates further.

With inflation still sitting well above the central bank’s target and the labor market showing few signs of softening, decision-makers have warned that more tightening will be needed to achieve their goal.

However, while the US economy remains in reasonable health, there is a growing concern that the Fed could tip it into recession next year if it keeps squeezing, with rates already at a 22-year high.

The bank indicated last week another lift could be on the cards before year’s end, while boss Jerome Powell and other policy board members have said they