Fed Yellen’s comment boosts Phl stocks

MANILA, Philippines - Philippine stocks returned above the 6,500 anew, drawing inspiration from the remarks of Federal Reserve chairperson Janet Yellen that the US economy will still need stimulus from the central bank.

At the Philippine Stock Exchange, the local barometer climbed 86.01 points, or 1.34 percent, to close at 6,514.72. The financial sector rose 1.86 percent, the property sub-index added 1.75 percent, and the holding firm sector jumped 1.22 percent to lead all counters in the green.

“After briefly flirting with losses in early trades, the PSEi broke off the chains of apprehension, buying into top- and second-tier counters to extend the momentum of the quarter-close to the month-open trades,” Jun Calaycay of Accord Capital Equities Corp.

US stocks advanced overnight after Yellen said the world’s largest economy will still require support from the Fed’s accommodative policy, alleviating fears that interest rates may rise sooner than expected. The Dow Jones Industrial Average gained 134.60 points, or 0.82 percent, to 16,457.66.

Advancers beat decliners, 88 to 69, while 42 issues were unchanged. Value turnover dipped to P8.57 billion from yesterday’s P9.98 billion, as 947.62 million shares were traded.

Most actively traded stocks were Metrobank, Ayala Land, SM Prime, PLDT and Ayala Corp. Top gainers were Medco, LRWC warrants and Megaworld warrants, while the biggest losers were PhilRacing, Prime Orion and ATN Holdings B.

“Yellen’s statement, based mainly on still struggling jobs numbers, provided some lift to investors who are becoming overly concerned with the pace of China’s growth. Recent data series have exposed threats to China’s growth raising hopes that the PBOC will adopt a more accommodative policy,” Calaycay said, referring to the People’s Bank of China.