Local stocks rally to 7,700 as US Fed keeps rates steady

The local stock barometer rallied to the 7,700 mark anew on Thursday after the “hawkish” 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 [kept the] 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 off the weak US economic data run as transitory and suggested intent to continue with its gradual tightening approach,” Citigroup said in a research note.

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 that 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.