Stocks end higher as US Federal Reserve keeps rates firm

MANILA, Philippines — The stock market ended the month on a strong note as market investors welcomed the move of the US Federal Reserve to keep rates steady.

The benchmark Philippine Stock Exchange index finished at 8,007.48, up 27.53 points or 0.34 percent while the broader All Shares gauge gained 5.32 points or 0.11 percent to end at 4,829.85.

All sectors were up as well with the holding firms and mining and oil leading the gains.

Total value turnover reached P10.811 billion.

Traders said the local bourse breached the 8,000 mark once more after the Federal Reserve kept its rates unchanged.

In all, the PSEi rallied 7.25 percent in the first month of the year.

“Western equities reacted positively to a dovish Fed sentiment. The Federal Reserve pledged to be patient with further interest rate hikes, signaling a potential end to its tightening cycle amid signs of slowing global growth. Here in the PSE, we got the bounce back that we expected after testing support at 7,900 on Wednesday,” said Christopher Mangun of Eagle Equities.

Foreign buying supported yesterday’s session as foreign investors continue to buy into the market with foreign net-buying at P818-million.

Mangun said trading volumes pick up with more foreign money flowing in which is a very good sign.

Moving forward, traders said investors would be keeping a close watch on the January inflation numbers, which are set to be released next week.