Stocks extend gains on bargain hunting

Philippine stocks extended their gains Wednesday on bargain hunting and strong performance of US equities.

The 30-company Philippine Stock Exchange Index surged 70.29 points, or 1.13 percent, to close at 6,295.25, while the broader all-shares index rose 27.57 points to settle at 3,382.19.

“Sentiment was buoyed by the bigger expected drop in US job openings and consumer confidence, with investors speculating that this could ease the pressure on the Federal Reserve to hike interest rates,” China Bank Capital managing director Juan Paolo Colet said.

Colet said that for the rest of the week, the bellwether might move past the 6,300 level as part of the market’s rebound from oversold conditions.

Selling pressures are expected as the index approaches the 6,375 resistance level.