SHARE prices on the Philippine Stock Exchange surged on Monday, pushing the benchmark index up 106.70 points or 1.34 percent to close at 8,069.81, despite various analysts suggesting last week that the market would slide at the onset of the ghost month of August.
The energy for Monday’s rally came mainly from expectations that the US Federal Reserves might delay again any upward adjustment to its key interest rates, now that US economy has marked slower than expected growth.
It grew at an annual rate of only1.2 percent in the second quarter ending June, less than half the 2.5 percent that global economists had predicted.
The price surge that also pushed the All Shares Index up by 41.15 points or 0.84 percent or to 4, 791.96, did not, however, boost total trading. Turnover was relatively low at P7.3 billion, with winners prevailing over losers, 120 to 82, while 41 issues were unchanged.
The volume, said Jonathan Latuja, the equity analyst at Unicapital Securities Inc., was due to the ghost month. Seasonality foreign fund managers are usually on vacation during this time of the year, he pointed out.
All sub-indices ended in the positive territory, with the holding, property and services sectors enjoying the biggest gains, 1.48 percent, 1.34 percent and 1.12 percent, respectively.
Meanwhile, Aniceto Pangan, trader at Diversified Securities Inc., said that investors would be waiting on Tuesday for the fiscal stimulus package from the government of Japan, expecting it to be more than enough to compensate for Bank of Japan’s modest stimulus package.