PSEi returns to 7,700

The local stock barometer rallied to the 7,700 mark anew on Thursday after the US Federal Open Market Committee (FOMC) policy meeting.

The main-share Philippine Stock Exchange index racked up 73.49 points or 0.96 percent to close at 7,755.75.

“FOMC statement leaned hawkish against the backdrop of soft economic data run. The FOMC maintained Fed (Federal Reserve) rate unchanged at this meeting and the statement did not have any mention of balance sheet reduction, both in keeping with market expectations. But FOMC shrugged the weak US economic data run as transitory and suggested intent to continue with its gradual tightening approach,” Citigroup said in a research note.

Together with much stronger than expected US’s April ISM non-manufacturing composite data, Citi said market expectations of a US Fed interest rate hike had been pushed towards 17 basis points for June FOMC and about 37 basis points for the rest of this year.

Joseph Roxas, president of local stock brokerage Eagle Equities, said prospects of two more US rate hikes this year perked up the market.

“The (prospective) rate hikes confirm that (US) economy is recovering nicely. Rate hike is return to normal,” Roxas said.

Except for the mining/oil index which was slightly down due to profit-taking, all counters were up. The biggest gainers were the services and property counters, which both rose by over 1 percent.

Value turnover for the day amounted to P7.52 billion.

There were 116 advancers that edged out 80 decliners while 47 stocks were unchanged.

The PSEi was led higher by URC, which rose by 2.35 percent while Ayala Land, JG Summit, SM Prime, SM Investments, ICTSI, Ayala Corp. and DMCI all gained.

BDO, Semirara, Jollibee, GT Capital, BPI, Megaworld, AGI and PLDT also firmed up.

Outside the PSEi, notable gainers included Apex Mining, which surged by 6.38 percent, while Bloomberry added 3.65 percent.