Europe stimulus extension buoys stocks

MANILA, Philippines - The local stock market stayed afloat yesterday, gaining 20.78 points or 0.29 percent to finish at 7,043.16 as investors welcomed the European Central Bank’s decision to extend the stimulus program.

The broader All Shares index was also up 7.76 points or 0.18 percent to end at 4,229.39.

The sectoral indices were a mixed bag. The financials, holding firms and services sectors were all up, while the property and mining and oil sectors were down.

Total value turnover reached P7.16 billion as advancing stocks edged out decliners 102 to 69 while 44 stocks were left unchanged.

Investors cheered the decision of the European Central Bank to prolong its quantitative easing program even as it planned to scale back the pace of monthly purchases to 60 billion euros from 80 billion euros previously.

The ECB’s stimulus program is seen to exceed 2.2 trillion euros by the end of 2017.

After the decision of the ECB, Lexter Azurin of Unicapital said investors would now look to the US as Federal Reserve officials are set to announce a decision on interest rates next week.