US Fed hike lifts market sentiment

MANILA, Philippines -  Positive sentiment prevailed at the stock market yesterday following the decision of the US Federal Reserve to raise its interest rates.

The US Fed raised rates for the second time in three months on the back of steady economic growth including stronger job numbers. The Fed raised the target overnight interest rate by 25 basis points to a range of 0.75 percent to one percent.

The Fed said further rate increases would only be gradual.

The benchmark Philippine Stock Exchange index (PSEi) gained 24.81 points, or 0.34 percent, to end at 7,278.60 while the broader Al Shares finished at 4,386.08, up 12.26 points or 0.28 percent.

Most sectors were up except for the mining and oil index which declined 68.23 points.

Total value turnover reached P6.14 billion as advancing stocks outnumbered decliners 102 to 76 while 47 issues were left unchanged.

Commenting on yesterday’s session and the move of the US Fed, Luis Limlingan, managing director of Regina Capital said:  “The post-meeting statement made only minor changes to the description of the economy and continued to describe risks to the outlook as roughly balanced.”