Index surges on BSP move to keep rates

MANILA, Philippines - The bellwether index climbed for the third straight day as investor concerns dissipated following the central banks’ decisions to maintain its key policy rates.

The Philippine Stock Exchange index gained 1.63 percent or 96.55 points to 6,011.14, while the broader all shares index rose 1.25 percent or 45.25 points to 3,655.93.

“Somehow, concerns dissipated and investors returned to the local market,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

“We breached the 6,000 resistance level as central banks maintained the status quo of policy rates,” said Freya B. Natividad, investment analyst at Papa Securities Corp.

Natividad said the improvement in Wall Street also benefited the local stock market.

The Dow Jones industrial average climbed 1.22 percent or 188.3 points to 15,628.53, while the broader Standard & Poor’s 500 index added 1.24 percent or 21.79 points to 1,773.43.

The government reported that jobless claims dropped to 20,000 last week to a seasonally adjusted 331,000. But investors are also awaiting the release of January employment data.

Stock markets in Hong Kong, Japan, Indonesia and Singapore also posted gains given the rally in Wall Street.

Locally, all counters were in the green, led by property firms that closed 1.75 percent or 39.31 points higher at 2,287.96.

The value of shares traded rose to P5.99 billion from P5.14 billion on Thursday. Advancers dominated decliners, 110 to 35, while 43 stocks did not change.

 

 

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