End of US bond buying program boosts index

MANILA, Philippines - The local benchmark index moved past the 7,100 mark on Thursday following the US Federal Reserve’s decision to end its bond purchase program.

The Philippine Stock Exchange index (PSEi) surged 1.10 percent or 77.68 points to close at 7,170.99, while the broader all shares index gained 0.86 percent or 35.98 points at 4,225.46.

Astro del Castillo, managing director at First Grade Finance Inc., said the combined influence the Fed’s decision and leads from third quarter earnings of listed companies lifted the bellwether index back to the 7,100 level after staying below the mark in the past two trading sessions.

“Investors were waiting for the move of the fund managers,” Del Castillo said.

The US Federal Reserve on Wednesday decided to keep interest rates on hold as well as end its quantitative easing stimulus program which started in 2008.

The decision, however, has had little impact on the US market as indexes in Wall Street fell in the negative territory.

The Nasdaq tumbled 0.33 percent, the Dow lost 0.18 percent, and the S&P 500 dropped 0.14 percent.

In the local market, meanwhile, four counters finished in the green led by holding firms which climbed 2.21 percent or 135.43 points. Services and mining and oil firms lost 0.34 percent and 0.30 percent, respectively.