MANILA, Philippines - Shares prices rallied yesterday on the back of positive news from the Organization of Petroleum Exporting Countries (OPEC) which has agreed to produce less to address a global oil supply glut.
The benchmark Philippine Stock Exchange index (PSEi) gained 83.67 points or 1.23 percent to finish 6,864.87, while the broader All Shares index rose 38.06 points or 0.92 percent to close at 4,158.53.
Total value turnover reached P9.36 billion with a positive market breadth as advancing stocks outpaced decliners, 121 to 64 while 37 stocks were left unchanged.
Commenting on yesterday’s market performance, BDO president Ed Francisco said the OPEC decision was the main reason for the market rally.
“It’s up mainly because of OPEC. Global markets went up so we just followed,” Francisco said.
OPEC and Russia agreed to produce less to address the global supply glut which has been felt for years.
It was the first agreement to reduce oil output since 2008 after de-facto leader Saudi Arabia agreed to slash output.
OPEC agreed to cut 1.2 million barrels per day (bpd), which was at the upper end of expectations of 0.7 to 1.2 million bpd.