The stock market gained for a second day on Friday, buoyed by reports that a US Fed rate hike could be delayed.
The benchmark Philippine Stock Exchange Index (PSEi) picked up by 1.69 percent or 112.30 points to close at 6, 765.13, while the wider All Shares likewise strengthened by 1.44 percent or 54.86 points to finish at 3, 868.61.
Astro del Castillo, president and managing director at First Grade Finance Inc. said concerns over another rate hike in the US had been assuaged by latest data.
“[The US] economy’s growth rate is slower. Thus, chances are there will be no rate hike. Therefore, investors are flocking again to the equities market,” del Castillo said.
Alexander Adrian Tiu, senior analyst at AB Capital Securities Inc. said the stock market’s positive performance could also be attributed to stronger oil prices that had sent Wall Street rising.
“The logic behind it is that when oil prices are up, there are lesser risks of default on the part of US companies who are engaged in the energy business. Hence, investors as well as creditors of these firms are becoming more confident,” Tiu said.
Tiu noted that the recent weakening of the US dollar likewise boosted the equities market since it discouraged investors from converting their money into foreign exchange.
All sub-indices were up, led by services that saw a 2.52-percent gain. Winners outnumbered losers, 106 to 54, while 53 issues were unchanged.
Total value turnover was strong at P7.391 billion.