PSEi mirrors global rally after US Fed keeps rates on hold

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LOCAL stocks rose for a third day on Thursday as investors cheered the US Federal Reserve’s decision to keep short-term interest rates to near zero.

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Jason Escartin, investment analyst at F. Yap Securities Inc., said the local market and the majority of the global markets were upbeat about the US Fed’s decision.

“The market continued its ascent after US Fed chief [Janet] Yellen said their labor market has yet to fully recover, adding benchmark US interest rates would be kept near zero for a ‘considerable time’,” Escartin said.

However, he said an aggressive rally of the local market was slightly tempered by concerns over China’s travel advisory against the Philippines.

Escartin said he now sees the market’s support at 7,220 points and resistance at 7,300.

The Philippine Stock Exchange index (PSEi) rose 55.45 points or 0.77 percent to 7,287.29, while the broader All Shares index rose 26.26 points or 0.61 percent to 4,309.73.

Gains were felt across the board led by industrials, which climbed 122.77 points or 1.09 percent to 11,367.49.

Financials jumped 15.35 points or 0.90 percent to 1,720.16 and holding firms advanced 45.61 points or 0.72 percent to 6,385.98, while services inched up 0.75 points or 0.03 percent to 2,227.32.

Mining and oil advanced 92.54 points or 0.51 percent to 18,089.90 and property went up 18.23 points or 0.66 percent to 2,771.21.

Among the top-traded stocks, Globe Telecom Inc. was flat while Philippine Long Distance Telephone Co. and Ayala Land Inc. both ended lower on Thursday.

The top gainers were SM Prime Holdings Inc., Universal Robina Corp., Bank of the Philippine Islands, Jollibee Foods Corp., Energy Development Corp., Nickel Asia Corp. and Metropolitan Bank and Trust Co.

Advancers narrowly outnumbered decliners 85 to 82, while 56 shares were unchanged. Total volume traded was 1.744 billion shares worth P7.99 billion.

On Wednesday, the PSEi climbed 51.50 points or 0.72 percent to 7,231.84, while the wider All Shares index was up 29 points or 0.68 percent at 4,283.47.

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