MANILA, Philippines - The Philippine Stock Exchange index (PSEi) surged 2.76 percent or 169.47 points to 6,302.71, snapping back-to-back losses and recording its highest closing since ending at 6,525.95 on Aug. 20.
“This shows a good sign of uptrend over the short term, mainly driven by the consecutive rallies in the US and easing tensions over Syria,†Freya B. Natividad, investment analyst at Papa Securities Corp.
“Early inputs were generally positive with Australian stocks setting the tone for the Asia-Pacific region,†said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.
Calaycay said the main index has climbed back to the 6,300 level where it traded prior to the emergence of the Syrian problem.
Markets abroad posted gains after Lawrence Summers, a candidate to be the new chair of the US Federal Reserve, surprisingly dropped out of the race. Investors pinned their hopes for a continuous easy money policy, which drives up liquidity in financial markets, on other leading candidates.
“We tend to cheer these news because we are addicted to the stimulus program,†Natividad said.
Closer to home, financial markets in Japan and Malaysia were closed due to national holidays. But Hong Kong’s Hang Seng index picked the optimism as it closed 1.47 percent or 337.13 points higher at 23,252.41.