Stocks rise on US Fed news

The local stock barometer firmed up yesterday as a “dovish” signal from the US central bank boosted risk appetite across regional markets.

Ending a two-day decline, the Philippine Stock Exchange index (PSEi) gained 24.83 points or 0.34 percent to close at 7,299.23, tracking mostly firmer regional markets. This was after US Federal Reserve Chair Janet Yellen reaffirmed signals that there was no rush for the central bank to raise interest rates.

“Fed Chair Yellen’s reiteration of the dovish message will help reduce uncertainty about the Fed’s reaction function,” Citigroup said in a research note

yesterday, adding that its economists have now downgraded their forecast for Fed tightening this year to only one increase.

At the local market, month- and quarter-end window-dressing also helped prop up equities.

The PSEi was led higher by the industrial sector, which rose by 1.01 percent, while services and property counters both gained. The holding firms and mining/oil counters both dipped.  Doris Dumlao-Abadilla