• Fed, GSP+ hike stocks


    The benchmark stock index closed the week up 1.37 percent on positive US markets and the approval of the GSP+ for exports to Europe.

    The Philippine Stock Exchange index (PSEi) climbed added  96.35 points to close at 7,125.63; while the wider All Shares went up 1.09 percent or 45.25 points to 4,195.81.

    The Dow Jones Industrial Average gained 421.28 points, while S&P 500 added 48.34 points and the tech-heavy Nasdaq rose by 104.08 points.

    Joyce Anne Ramos, analyst at AB Capital Securities Inc., said the US markets pulled up the PSEi “on the US Federal Reserve’s statement that they will be “patient” before hiking the interest rate. The Philippine market generally followed suit.”

    “Another factor is the GSP+. The Philippine export industry is set to benefit now that our application as been approved. Another factor could be a year end rally driven by bargain hunting from the previous lows,” she added.

    Ramos said the market is seen to continue the Santa Claus rally for the last three trading days left—December 22, 23 and 29—despite thinner volume ahead considering the long weekend.

    Market next year is likely to reach 7,700 points next year and remain bullish, she said, but investors should expect strong volatility given the global uncertainties.

    Sectoral indices ended in a clean green on Friday: Financials up 1.79 percent or 29.51 points to 1,677.54; Industrial advanced 1.61 percent or 187.68 points to 11,817.36; Holding Firms rose by 1.30 percent or 79.58 points to 6,190.02; Services increased by 0.83 percent or 17.18 points to 2,087.68; Mining and Oil leapt by 0.92 percent or 139.51 points to 15,347.61; and Property jumped by 0.98 percent or 26.80 points to 2,770.27.

    Among the top 10 active stocks, only EDC declined by 1.09 percent while the rest advanced up to 2.98 percent. The advancers were SM, ALI, URC, TEL, BDO, AC, MBT, SMPH, and SECB.

    Gainers ended higher against losers, 119 to 62, while the 46 shares did not move. Traded issues reached 1.56 billion, valued at P20.61 billion.

    On Thursday, the main PSEi was up by 0.91 percent or 63.07 points to 7,029.28, while the All Shares also increased by 0.44 percent or 18.16 points to 4,150.56.


    Please follow our commenting guidelines.

    Comments are closed.