The local stock barometer climbed past the 6,200 mark Wednesday as investors were relieved that another crisis in the Middle East could be averted.
Gaining for the fourth straight session, the main-share Philippine Stock Exchange index racked up 125.18 points or 2.06 percent to close at 6,214.90.
Local stockbrokerage Regina Capital said Wednesday’s rally was “due to the probability of a (US) military strike against Syria becoming less likely.”
This followed reports that US President Obama was willing to pursue a diplomatic solution to the Syria crisis, heeding “encouraging signs.” Russia earlier proposed to put Syrian chemical weapons under international control.
Another war in the Middle East would have resulted in skyrocketing oil prices that, in turn, are bad for oil-importing countries such as the Philippines.
The local stock market has seen modest net foreign buying in the last few days, which dealers said might have likewise indicated that concerns on the US Federal Reserve’s tapering of easy money could have been digested. Doris C. Dumlao