Index rallies on positive foreign news news

MANILA, Philippines - Philippine stocks rallied yesterday following reports of Japan’s economic expansion and positive US employment data.

The Philippine Stock Exchange index (PSEi) climbed 2.59 percent or 173.65 points to settle at 6,875.60, recording one of the highest gains for the main index this year and the largest increase since it jumped 2.74 percent on March 27.

External factors brought the bellwether index closer to the 6,900 territory anew.

“PSEi extended its run to a third day, joining its peers in the region in cheering Japan’s economic growth,” said Justino Calaycay Jr., analyst at Accord Capital Securities.

“Briefly breaching the 6,900 late in the mid-afternoon session, PSEi has taken back nearly 40 percent of the values lost during the meltdown in just three sessions,” Calaycay said.

Markets abroad were optimistic as Japan’s economy grew 4.1 percent in the first quarter, up from the 3.5-percent preliminary data while US jobs data released late last week showed improvements in employment.

Japan’s Nikkei 225 surged 4.94 percent or 636.67 points to 13,514.20 while Wall Street also recorded gains. Dow Jones Industrial average added 1.4 percent or 207.50 points to 15,248.12 points.

Locally, all subindices ended in positive territory, led by the service sector that rose 4.36 percent or 85.96 points to 2,058.76.

Turnover picked up to P14.22 billion, boosted by a P3.96-billion block sale of newly-listed Del Monte Pacific Ltd., compared with P9.55 billion on Friday.

Advancers outpaced decliners 123 to 52, while 29 stocks did not change.