Phl stocks surge on upbeat US economy

MANILA, Philippines - Philippine stocks ended the month with a strong performance, fueled by the upbeat US market that helped push the local benchmark index above the 7,200 level.

The Philippine Stock Exchange index (PSEi) jumped 0.62 percent or 44.74 points to end at 7,215.73, while the broader all shares index climbed 0.59 percent or 25.05 points at 4,250.51..

It was the first time the PSEi ended above the 7,200 mark in weeks, the last of which was in Oct. 8 when it closed at 7,201.54.

Alex Tiu, analyst at AB Capital Securities Inc., said the higher-than-expected third quarter gross domestic product of the US coupled with the Federal Reserve’s decision to end its bond buying program provided a one-two punch combination of good news for both the local and international markets.

“The QE ended in a positive note and in general, that means that the US economy is rebounding. And with the positive third quarter GDP data, it’s a good combination that helped pulled equities higher,” Tiu said.

US stocks fared well on Thursday, led by the Dow which gained 1.30 percent or 221.11 points.

Locally, all counters ended in the green, with the industrial firms leading the charge as it picked up 0.92 percent or 105.62 points.

Value of shares traded surged to P9.71 billion from P7.62 billion the previous day. Market breadth stayed healthy as advancers outshine decliners, 100 to 72, while 47 stocks did not change.