Philippine stocks follow Wall St. rally

MANILA, Philippines—Local share prices rebounded on Wednesday on the back of Wall Street’s rally the night before.

The benchmark Philippine Stock Exchange index (PSEi) rose 0.87 percent, or 36.29 points, to close at 4,193.55, recovering from the 1.36-percent drop on Tuesday.

The rally was fueled by foreign investors’ speculative buying due to signs of economic recovery and news that Europe’s bailout fund would be increased.

The broader all-share index advanced 0.63 percent, or 18.38 points, to 2,948.55 as all sub-indices closed in the green, led by holding firms that added 1.13 percent, or 37.51 points, to 3,358.12.

Services and property climbed higher by 0.98 percent, or 14.23 points, to 1,466.84 and 0.89 percent, or 13.19 points, to 1,488.50. Advancers overtook decliners, 90 to 55, while 38 stocks remained unchanged.

Among the day’s top gainers were Megaworld (3.93 percent) and Alliance Global (2.43 percent). Budget carrier Cebu Pacific, which rose 2.84 percent, was also included in the gainers’ list after the company announced a 12-percent increase in passenger ridership in the third quarter.

ICTSI rose 2.49 percent following news that the Philippine Ports Authority approved an increase in cargo and passenger handling rates at the Port Area.