PHILIPPINE shares returned to the 7,000 level as investors bought on bets of continued loose policy from European Central Bank (ECB), a sentiment that kept markets in buoyant mood.
“As with every other markets around the world, the PSEi joined them in a rally ahead of the ECB meeting with expectations that the central bank will maintain its accommodative policy,” Jonathan Latuja, equity analyst at Unicapital Securities Inc., said in a text message.
The PSEi leapt by 2.27 percent or 155.57 points to 7,022.38, while the All Shares also jumped 1.65 percent or 68.57 points to 4,221.63.
“Market’s rally was spurred as investors’ sentiment was boosted by Wall Street’s rally overnight. This caused local players to add more positions,” Jonathan Ravelas, BDO chief market strategist, said.
Overnight, Wall Street closed on a positive note on hopes that that the ECB meeting will bode well for the global financial markets.
The Dow Jones Industrial Average increased by 1.55 percent or 297.84 points to 19,549.62, while the S&P 500 advanced by 1.32 percent or 29.12 points to 2,241.35 and Nasdaq climbed by 1.14 percent or 60.76 points to 5,393.76.
Moving forward, Ravelas noted Philippine shares are likely to trade neutral within the 6,850 to 7,100 range.
The property, industrial, and services sectors led the market rally, while the mining and oil index fell to negative territory.
Among the active gainers were Ayala Land Inc., Ayala Corp., PLDT Inc., SM Prime Holdings Inc., Universal Robina Corp., and Megaworld Corp.
Some 1.03 billion shares were traded, valued at P7.47 billion. Gainers outnumbered losers, 120 to 63, while 44 shares traded unchanged.
On Wednesday, the PSEi rose by 0.89 percent or 60.67 points to 6,866.10, while the All Shares advanced by 0.88 percent or 36.32 points to 4,153.06.
Latuja noted the market tends to trade “rangebound” with a positive bent in the next few days, until the Federal Reserve makes an announcement on interest rates after its December 13 to 14 meeting, which will set the tone for global markets moving forward.