ECB’s euro rescue plan propels Phl stocks

MANILA, Philippines - The local benchmark index zoomed to a new record close yesterday following a worldwide rally triggered by the European Central Bank’s bond-buying stimulus program.

The Philippine Stock Exchange index (PSEi) soared 1.79 percent or 132.62 points to record a new all-time high of 7,548.93, shattering its previous high of 7,490.88 set last Jan. 14.

It was the third time the PSEi broke into new record levels in just the first month of the year.

The All Shares index likewise joined the climb, inching up by 1.55 percent or 67.18 points to end at 4,403.42.

“Buying resumed as players heed their guidance from Wall Street’s overnight ascent. Part of drivers were ECB’s $69 billion per month asset purchase plan which is seen to keep low interest rates at bay,” said Jason Escartin, investment analyst at F. Yap Securities.

All three indexes in Wall Street finished in the positive territory. The Nasdaq grew 1.78 percent or 82.98 points, the S&P 500 gained 1.53 percent or 31.03 points, and the Dow improved 1.48 percent or 259.70 points.

Asian shares were also up with Japan’s Nikkei increasing by one percent.

Locally, counters were all in the green led by property firms and holding firms which surged more than two percent each. Only the services counter grew by less than one percent during the session.

Market breadth turned out healthy once more as advancers subdued decliners, 114 to 68, while 42 stocks were unchanged.

Despite the rally, value turnover thinned to P12.20 billion from the previous day’s P19.80 billion.