Hints of progress in US fiscal impasse boost stocks

MANILA, Philippines - Signs of progress in negotiations to raise the US debt ceiling boosted the local bourse for the second straight day yesterday.

The Philippine Stock Exchange index climbed 0.84 percent or 53.83 points to end the week at 6,489.80. The broader all shares index gained 0.87 percent or 33.73 points to 3,925.79.

“The market ended higher on a higher note following positive developments regarding the US debt ceiling,” said BPITrade.com director Richard Anthony Liboro.

However, mid-day profit taking tempered the gains of the main index, which hit an intraday high of 6,536.85, Liboro said.

Jonathan Ravelas, chief market strategist at BDO Unibank Inc., said the stock market rallied “as it breathed a sigh of relief following developments in the US extending the deadline of the US debt ceiling.”

Investors welcomed news that US President Barack Obama and Republican leaders are already working together to increase the US debt ceiling ahead of the Oct. 17 deadline.

The Dow Jones industrial average surge 2.2 percent or 323.09 points to 15,126.07, while the broader Standard & Poor’s 500 index jumped 2.2 percent or 36.16 points to 1,692.56.

Asian markets also took note of Wall Street’s gains. Japan’s Nikkei gained 1.48 percent or 210.03 points to 14,404.74 while Hong Kong’s Hang Seng index rose 1.16 percent or 267.02 points to 23,218.32.

Locally, all subindices were in the positive territory, led by financial firms that picked up 1.56 percent or 24.51 points to 1,600.01.