Local stocks rallied sharply Wednesday, riding on a global upswing fueled by rising bets on global monetary stimulus in the aftermath of a stunning Brexit vote.
The Philippine Stock Exchange index (PSEi) racked up 131.84 points or 1.72 percent to close at 7,798.53, tracking upbeat global markets.
“Fear of unending uncertainty has begun to give way to some tentative hope,” Citigroup said in a research note, adding that investors who had been defensively positioned following Britain’s decision to exit the European Union were now looking to deploy capital.
Citi said it would encourage investors to gradually scale into exposure in emerging markets in anticipation of a “bubble up” rally.
In the case of the US Federal Reserve, whose potential movement is another source of global market volatility, Citi now expected the next rate increase to be pushed back to December.
At the local market, all counters advanced, led by the holding firm counter, which surged 1.93 percent. There were 128 advancers that overwhelmed 66 decliners while 48 stocks were
unchanged. Value turnover amounted to P7.56 billion.
Gaming stock Bloomberry led the PSEi higher, rising by 7.93 percent on robust earnings forecast for the second quarter. Gaming peer Melco Crown, which is now part of the PSEi, likewise gained 8.66 percent.
Universal Robina Corp., SM Prime, PLDT, SM Investments Corp., Metrobank and Megaworld led the PSEi higher, all rising by more than 2 percent.
BDO Unibank and First Gen gained more than 1 percent while Globe, Jollibee, Ayala Corp. and JG Summit also contributed to the day’s gains.
The PSE also welcomed Wednesday family-led death care service provider Golden Haven, the first company to debut on the market for the year. (See story on page B2). Doris Dumlao-Abadilla