PHILIPPINE stocks on Monday took the cue from global markets to surge above the 7,000-mark on the PSEi, shrugging off concerns over a potential interest rate hike by the Federal Open Market Committee (FOMC) later this week.
The threat of a slowing China economy was also put aside for the time being.
The Philippine Stock Exchange index (PSEi) soared by 2.28 percent or 157.80 points to close at 7,069.18. The wider All Shares increased by 1.56 percent or 61.96 points to 4,025.61.
Over 2.82 billion shares, valued at P5.178 billion, were traded. Gainers outnumbered losers, 101 to 64, while the 37 issues were unchanged.
Though trailing advances recorded by global markets, the Philippines has outshined other markets as investors saw that the local story “is still intact,” Bryan Gomez, co-head of investments at Citisecurities Inc., said.
“The global markets are in a rally mode and it seems the Philippines is the strongest. Bargain hunters are betting that our secular story is still intact and anything that comes out of the FOMC meet this week has already been discounted,” Gomez said.
The FOMC is meeting on September 16 and 17, and may decide on whether to raise interest rates in the world’s largest economy.
US markets were up over the weekend, sparking rallies in most Asian and European markets, as the Dow Jones gained 102.69 points or 0.63 percent to 16,433.09, while the S&P 500 added 8.76 points or 0.45 percent to 1,961.05, and the Nasdaq went up 26.09 points or 0.54 percent to 4,822.34.
On Friday, the PSEi improved by 0.26 percent or 17.84 points at 6,911.38 while the All Shares rose by 0.24 percent or 9.30 points to 3,963.65.
Asked if investors expect further rallies after Monday’s surge, Gomez said: “I think the market rally in the Philippines still has room to go.”