Stocks sustain climb as US Fed keeps rates low

MANILA, Philippines - The local stock index continued to gain ground yesterday following the US Federal Reserve’s decision to keep interest rates near zero for a “considerable time.”

The benchmark Philippine Stock Exchange index stretched its winning streak to a third straight day as it climbed 0.77 percent or 55.45 points to close at 7,287.29 yesterday, while the broader All Shares index gained 0.61 percent or 26.26 points to 4,309.73.

Local share prices were catapulted primarily by the Fed’s announcement that likewise spurred gains in Wall St., analysts said.

The local bourse tracked the US market as the Nasdaq picked up 0.21 percent while the Dow Jones and the Standard & Poor’s 500 index added 0.15 percent and 0.13 percent, respectively.

“The market may continue its ascent, after US Fed chief Yellen said their labor market has yet to fully recover, adding benchmark US interest rates would be kept near zero for a considerable time,” said F. Yap Securities investment analyst Jason Escartin.

Locally, all counters finished in the green, led by industrial firms which gained 1.09 percent or 122.77 points.

Market breadth remained positive as advancers edged out decliners, 85 to 82, while 56 stocks were unchanged.

Total turnover value declined slightly to P7.995 billion from the previous session’s P8.11 billion.

Escartin, however, warned that aggressive rallies might be tempered in the coming days by concern over China’s travel advisory against the Philippines.