Stocks rally on Fed, BSP news

Philippine share prices rallied Friday, with optimism fueled by the US Federal Reserve’s latest decision to sustain efforts to bolster the world’s biggest economy.

The benchmark Philippine Stock Exchange index (PSEi) surged to 5,322.47, up 1.56 percent or 81.97 points—breaching the 5,300 level in five weeks.

All sub-indices ended the session with gains, led by property shares, which also benefited from the Bangko Sentral ng Pilipinas’ (BSP) decision to keep policy rates at record lows on Thursday.

The broader all-shares index rose 1.13 percent as advancers led decliners by more than two to one. Trading volume was robust with 1.87 billion shares changing hands for P6.6 billion.

Brokerage firm 2TradeAsia.com said the Federal Reserve’s move would “bolster the economy and jobs market, which also supports the central bank’s (BSP) latest status quo of key benchmark rates.”

“Further, Wall Street’s sharp overnight ascent is seen to power rallies,” the firm said in a report.  Paolo G. Montecillo