The local stock barometer rallied to the 7,700 level on Friday as investors welcomed a much-awaited 25-basis point interest rate increase by the inflation-targeting Bangko Sentral ng Pilipinas.
The main-share Philippine Stock Exchange index (PSEi) gained 181.11 points or 2.39 percent to close at 7,752.11.
For the week, the index gained 205.92 points or 2.7 percent.
Foreign investors helped prop up the index with some P571.2 million in net foreign buying recorded for the day.
Joseph Roxas, president of Eagle Equities Inc., said the BSP’s rate increase had been “long awaited” given the higher-than-expected spike in inflation in recent months.
The stock market likewise drew strength from mostly upbeat regional markets, which benefited from the positive sentiment arising from the Malaysian election. Mahathir Mohamad is back on the saddle as prime minister.
“Any election tends to lift the stock market,” Roxas said.
Value turnover remained thin at P5.7 billion. There were 116 advancers that edged out 80 decliners while 49 stocks were unchanged.
All counters gained but the biggest advancers were the financial, holding firm and property counters, which all went up by more than 2 percent.
Ayala Corp., BDO, Security Bank, DMCI and Globe Telecom lifted the main index, all rising by more than 3 percent.
Metrobank, Ayala Land, BPI, SM Prime, ICTSI, GT Capital and JG Summit all added more than 2 percent.
SM Investments, Jollibee and Megaworld gained more than 1 percent.
Metro Pacific also contributed modest gains.