Market back to 7,100 level

THE LOCAL stock barometer yesterday surged back to the 7,100 level as global markets bet that the US Federal Reserve would defer its much-anticipated interest rate “lift-off.”

The Philippine Stock Exchange index gained 30.07 points or 0.42 percent to close at 7,123.99. Taking their cue from upbeat US stocks, most markets in the region, except China, traded higher.

The day’s gains were led by the financial, industrial, holding firm, services and property counters. Only the mining/oil counter ended lower yesterday.

Value turnover was thin at P6.76 billion ahead of the conclusion of the two-day US Federal Reserve Open Market Committee (FOMC) meeting. The Fed was expected to announce last night whether it would raise interest rates for the first time in a decade.

“The uncertainty around FOMC decision is high. For a sustained rally in risk assets, not only does the Fed have to keep up with dovish market expectations but at the same time it has to convey confidence in the strength of US growth recovery,” Citi said in a research note on Thursday.

At the local market, there were 114 advancers that edged out 62 decliners while 37 stocks were unchanged.

There was net foreign buying of P238 million that supported stocks for the day. Doris Dumlao-Abadilla