By Leslie D. Venzon
MANILA, (PNA) — Philippine shares staged a spectacular rally along with other Asian stocks, as investors cheered the United States (US) central bank’s surprise decision to maintain its stimulus program.
The benchmark Philippine stock exchange index (PSEi) surged 177.74 points or 2.81 percent to 6,511.70 from 6,333.96 close the previous day.
Jonathan Ravelas, Banco de Oro Unibank chief market strategist, said markets were overjoyed when the US Federal Reserve holds off the taper.
”This is good news for the local markets, the dollar-peso try P43 to P43.25 level and 6,500 levels for the PSEi. Bulls at play,” said Ravelas.
Brokerage firm 2tradeasia.com said market players also took their guidance overseas with the strong overnight rally in prices of US stocks.
It said these developments, along with Fed authorities decision to adopt a status quo on their present $ 85-billion bond purchase plan, will help support low and stable interest rates.
”(These) would perk-up expectations for low borrowing costs,” it added.
The market’s rally was led mainly by property and financials that surged 4.65 percent and 4.08 percent.
The sub-indices of sectors rose 1.54 percent and 2.37 percent.
Volume of transactions reached 1.77 billion shares valued at P15.97 billion.
Gainers won decliners, 133 to 36, while 35 issues were unchanged.
Top gainers were led by Vivant Corp., Panasonic Manufacturing Philippines Corp., United Paragon Mining Corp., Nextstage Inc. and LMG Chemicals Corp.