Share prices on the Philippine Stock Exchange returned to the 7,600-level on the benchmark PSEi, supported by the US Federal Reserve decision not to raise interest rates for now.
The PSEi rose by 0.94 percent or 70.55 points to 7,606.86 on Thursday, while the All Shares increased by 0.65 percent or 28.05 points to 4,352.18.
Over 654.63 million shares, valued at P6.89 billion, were traded. Gainers led losers, 89 to 71, while 42 issues were steady.
The market was influenced by the Fed announcement that it won’t raise interest rates within the month, but hinted at the likelihood of gradual increase later this year, Lexter Azurin, analyst at Unicapital Securities Inc., said in a phone interview.
“It is basically due to the Fed statement last night. The market viewed it positively because they already expected the rate increase in the US. The Fed signaled that rates will be raised gradually later this year – not immediately – and investors viewed that positively,” Azurin said.
Azurin said the market will continue to seek leads from the global markets in the next few days.
If the market has managed to establish the 7,400 to 7,500 range as major support area, then it may be ready to retest the recent highs.