Index soars as market welcomes Fed action
MANILA, Philippines - The widely anticipated US Federal Reserve rate hike proceeded as expected yesterday, sending the Philippine Stock Exchange index up nearly 100 points.
“The Fed raised policy rates by 25 basis points plus four quarter point increases in 2016. Wall Street rallied. The PSEi closed at 6,905.70. It was an expected rally after the Fed announcement this morning,” Paolo Hizon of Unicapital said yesterday.
The main composite index surged 97.98 points to settle at 6,905.70, while the broader All Shares index likewise soared 46.75 or 1.19 percent to close at 3,964.32.
All other indexes except for one closed in positive territory, with the industrial and holding firms indexes posting the biggest gains with an increase of 146.74 and 116.91 points, respectively.
Value turnover rose to P6.3 billion as advancers edged out decliners, 101 to 60 while 47 stocks were left unchanged.
The US Federal Reserve raised short-term interest rate for the first time in nearly a decade on account of improving US economy. This puts an end to the near-zero borrowing costs that have prevailed since the US financial crisis of 2008.
Equity markets across the globe including the local bourse rallied as they took the US Fed’s move in stride.
- Latest
- Trending
