Stocks close up

Bargain-hunting propped up local share prices at the end of the week after falling for three straight days prior.

The benchmark Philippine Stock Exchange Index (PSEi) rose 1.47 percent or 68.21 points to close at 4,679.89 points yesterday. The all-share index also rose 1 percent or 31.24 points to 3,168.91.

The rally was led by property shares, which rose 3.2 percent, driven by Megaworld Corp. (1.17 percent) and Robinsons Land (4.69 percent).

Market heavyweight Philippine Long Distance Telephone Co. was the day’s most actively traded issue, closing 3.3 percent up to P2,740 apiece.

Trading volume was robust with 7.46 billion shares worth P5.92 billion changing hands.

The day’s 100 advancers led the 61 decliners, while 49 issues were unchanged.

A local brokerage said the central bank’s pronouncements of an estimated recovery in the country’s export sector, which makes up a third of domestic output, helped fuel the rally.

“The US Federal Reserve decision to maintain interest rates at historic lows should translate to higher consumption and investment demand,” the firm added. “Moreover it has given the [Bangko Sentral ng Pilipinas] flexibility to ease its policy stance to support economic growth.”

Earlier this month, the central bank cut key interest rates by 25 basis points in a bid to pump-prime the economy amid benign inflation pressures.  Paolo G. Montecillo