PSEi returns to 6,100 level

The local stock barometer bounced by 1.51 percent on Tuesday, returning to the 6,100 level, as investors picked up shares of oversold companies such as online gaming firm DigiPlus Interactive Corp.

The Philippine Stock Exchange Index (PSEi) gained 91.31 points or 1.51 percent to close at 6,148.74. The index tracked mostly upbeat Asian and US stock markets ahead of the upcoming US Federal Reserve (Fed) meeting this week.

“I think that in general, market is anticipating lower US rates,” said veteran stock broker Joseph Roxas, president of Eagle Equities Inc.

Market pundits believe that the recent US jobs and inflation data would give the US central bank elbow room to cut interest rates.

“After the market closed in the red [on Monday], buyers took control of today’s session as bargain hunting persisted,” said Luis Gerardo Limlingan, head of sales at Regina Capital Development.

“However, firm catalysts are still needed to determine whether this marks the beginning of a true market recovery,” he added.

Limlingan noted that the Nasdaq and S&P 500 had ended at record highs on Monday while the Dow finished just below its peak.

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“Investor sentiment was lifted by expectations of an upcoming interest rate cut from the Fed, which slightly offset the concerns about slowing job growth,” he said.

The local index was led higher by the financial sector, which gained 3.7 percent, led by BPI (+7.23 percent), BDO (+3.96 percent) and Metrobank (+1.63 percent).

The mining/oil counter also racked up 3.22 percent.