The stock market hit a new all-time high on Thursday, closing in on the 8,500-point territory as trading resumed after a two-day break and investors digested news that the US Federal Reserve was keeping interest rates steady.
The benchmark Philippine Stock Exchange index (PSEi), which rose to an intraday high of 8,543.80, ended the day up 1.80 percent or 150.76 points at 8,516.02.
The wider All Shares grew 1.33 percent or 65.04 points to finish at 4,956.97.
“I think [the market was]higher by a lot today because it saw that the Fed did not raise rates, which gave listed firms [time]to adjust,” COL Financial chief technical analyst Juanis Barredo said.
“Banks also did well and the general mood in the [Asian markets] was quite buoyant and helped restore optimism,” he added.
The policymaking Federal Open Market Committee voted unanimously to leave interest rates unchanged but indicated that it remained on track to raise rates one more time this year.
“The momentum is there for the market. Nagkaroon ng [There was a] minor correction but the air of optimism is still there,” First Grade Finance, Inc. Managing Director Astro del Castillo said.
He added that sentiment in the local market was also catching up with regional peers.
Chris Mangun, research head at Eagle Equities, Inc. said the market close was a positive reaction “from [the]pullback that we saw last week, which alleviated pressure because of the market having gone up too far, too fast” in October.
Only the mining and oil sector posted declines on Thursday, dropping by 0.17 percent.
Over 1.4 billion issues valued at P9.5 billion were traded.
Winners led losers, 116 to 79, while 47 issues were unchanged.