Index climbs as investors cheer Yellen news

MANILA, Philippines - Philippine stocks continued to climb yesterday as investors cheered signs of an extended easy money policy of the US Federal Reserve.

The Philippine Stock Exchange index picked up 0.29 percent or 18.52 points to settle at 6,346.40, while the broader all shares index inched up 0.11 percent or 4.26 points to 3,869.

“As expected, the market nudged its way up due in part to (US Fed vice-chair Janet) Yellen’s indicative positive comments on Thursday on the US economy,” said BPITrade.com director Richard Anthony Liboro.

But gains were tempered by net foreign selling, which hit P330.97 million, Liboro said.

Yellen defended before the Senate the move of the US Fed to boost the economy through the stimulus program.

Wall Street gained anew on Thursday driven by Yellen’s comments and gains in shares of power firms, banks and drug makers.

The Dow Jones industrial average added 0.4 percent or 54.59 points to a record 15,876.22 while the broader Standard & Poor’s 500 index climbed 0.5 percent or 8.62 points to 1,790.62.

Asian markets also benefited from Yellen’s stance on easy money policy. Japan’s Nikkei 225 jumped 1.95 percent or 289.51 points to 15,165.92 while Hong Kong’s Hang Seng index closed 1.69 percent or 383 points higher at 23,032.15.

Locally, counters were mixed, with the industrial sector leading the losers at it declined 0.49 percent or 45.06 points to 9,104.31 but holding firms posted a 0.73-percent or 42.03-point uptick to 5,808.23.