Index surges on China’s decision to cut rates

MANILA, Philippines -  The Philippine Stock Exchange index (PSEi) rose yesterday to a new record high for this year with positive news from the world’s second largest economy lifting share prices upward.

The PSEi soared 0.67 percent or 48.95 points to end at 7,325.13 while the All Shares index climbed 0.51 percent or 21.98 points to 4,300.37.

Yesterday’s new high eclipsed the existing 2014 record of 7,314.94 posted on Sept. 8.

“The local index was boosted by positive international news, led by the rate cut in China. Market was able to react positively with the news,” said Astro del Castillo, managing director at First Grade Finance Inc.

China unexpectedly cut interest rates on Monday, boosting not only Philippine share prices but in entire Asia as well.

In the US, Wall Street also rallied behind S&P 500’s 0.52 percent increase and Dow’s 0.51 percent growth.

Locally, all counters ended in the green, led by mining and oil, industrial and property firms.

Mining and oil firms picked up 1.56 percent, while industrial and property firms gained 1.22 percent and 1.19 percent, respectively.

Financials were the slowest gainers yesterday, adding only 0.1 percent.

Market breadth continued its winning ways as advancers pounded decliners, 100 to 83.