PHL shares open higher as rebound continues

Philippine shares opened higher Tuesday, propped up by an ongoing technical rebound amid speculations on the tapering of US Federal Reserve's (Fed) massive bond-buying program.

 

"The market is on a technical rebound, to cover between 6,500 and 6,400 levels," Gregg Adrian Ilag, analyst at AB Capital Securities Inc., told GMA News Online.

 

"The market opened slightly higher, but volume is quite narrow so a rally is not convincing," he added.

 

The main PSEi soared by 108.27 or 1.71 percent to 6,447.68 as of 10:04 a.m.

 

Ilag said global markets are focusing on speculations on the tapering of US Fed's bond-buying program and the Philippines is following global and regional trends.

 

"The markets are thinking that [the Fed] will not wind down its quantitative easing based on market movements," he added.

 

In his daily report, Accord Cpaital Equities Corporation analyst Justino B. Calaycay noted that trades will continue to be subdued in the next two sessions, until the Fed releases minutes of its meeting on Tuesday and Wednesday (Wednesday and Thursday in Manila).

 

"We may see some more enterprising investors place bets either way by Wednesday, but over-all the PSEi should be locked in a range over the period," he said. 

 

"We expect the Fed statement to focus on assuaging market fears even as it keeps its options on tapering on the table," he added. — VS, GMA News