Strong US, regional markets boost index

MANILA, Philippines - Philippine stocks inched closer to the 6,000 level yesterday on the back of a stronger global growth forecast and gains in US and regional markets.

Benchmark Philippine Stock Exchange index climbed 0.66 percent or 39.04 points to 5,986.48, while the broader all shares index rose 0.62 percent or 22.49 points to 3,667.59.

“Janet Yellen’s Senate confirmation as the next Fed chairperson, a narrower US trade gap, a lower-than-targeted eurozone inflation and a drop in Germany’s unemployed parlayed into advances in equity markets on both sides of the Atlantic,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.

“Trading continues to be confined to a narrow band in keeping what analysts described as a side-ways bias which, in turn, manifests a lingering uncertainty on the broad economy on one hand and the full impact of Fed tapering on the other,” Calaycay said.

The market also welcomed reports that the International Monetary Fund (IMF) is expected to revise upward its global growth outlook for this year. In the World Economic Outlook released in October, the IMF pegged global economic growth to 2.9 percent in 2013 and 3.6 percent in 2014.

Asian stocks also showed improvement yesterday, with Japan’s Nikkei 225 rallying 1.94 percent or 307.08 points to 16,121.45.

At home, all counters were in the positive territory, led by property firms that added 1.43 percent or 31.95 points to 2,272.43 and industrial firms that gained 0.89 percent or 78.44 points to 8,903.76.