PSEi gains as US Federal Reserve rules out tightened interest rates for now

MANILA, Philippines — Most local stocks firmed up on Thursday as investors were emboldened by a dovish remark made by US Federal Reserve chief Janet Yellen.

The main-share Philippine Stock Exchange index gained 16.7 points or 0.25 percent to close at 6,765.21.

Most counters posted modest gains except for the mining/oil sub-sector, which was hit by profit-taking.

Value turnover for the day amounted to P7.6 billion. There were 99 advancers that beat 80 decliners while 41 stocks were unchanged.

Domestic investors supported the day’s rise as foreign investors were net sellers in the amount of P200 million.

The PSEi was led higher by SM Prime (+3.32 percent) while other large-cap stocks like PLDT, SMIC, AC, BDO, MPI, ICTSI, AGI and DMCI posted modest gains.

Many stocks, which were actively traded were outside of the PSEi as investors hunted for other investment alternatives.

Among the key gainers were PNB (+3.37 percent), Robinsons Retail (+2.44 percent), ACR (+3.82 percent), DNL (+6.14 percent), CNPF (+2.05 percent) and Nickel Asia (+1.1 percent).

Across the region, most markets were perked up by Yellen’s testimony before Congress that the US economy has remained in need of lots of support given the “considerable slack” in the labor market. This comment boosted expectations that while the US central bank has begun tapering its monetary stimulus, it would refrain from tightening interest rates.

At the local financial market, the Bangko Sentral ng Pilipinas’ decision to increase the reserve requirement by another 100 basis points on Thursday was largely expected.

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