Risk-on sentiments, partly due to a clearer timeline of the Federal Reserve’s asset purchases tapering, fueled the improvement of both the local bourse and the Philippine peso, which strengthened to the 49-level on Thursday.
The Philippine Stock Exchange index (PSEi) rose by 1.41 percent, or 100.68 points, to 7,233.26 points.
All Shares posted the same jump of 1.41 percent to 3,836.11 points or 53.52 points.
Services registered the highest increase among the sectoral indexes after rising by 2.8 percent and were trailed by Industrial, 1.54 percent; Holding Firms, 1.27 percent; Financials, 0.77 percent; Mining and Oil, 0.76 percent; and Property, 0.55 percent.
Total volume reached 2.92 billion shares amounting to PHP87.52 billion.
Advancers led decliners at 109 to 65, while 54 shares were unchanged.
“Philippine shares advanced this session as investors made bets that the first reported (coronavirus disease 2019) Omicron cases would be contained and after the Fed gave more clarity as to when it would start tapering,” said Luis Limlingan, Regina Capital Development Corp. head of sales.
The Federal Reserve announced it would start reducing asset purchases in January 2022 at USD60 billion per month.
Fed officials also hinted about three interest rate increases next year as inflation remains elevated.
Meanwhile, the local currency improved against the US dollar after finishing the day at 49.96 from 50.27 on Wednesday.
It started the day at 50.2 and traded between 50.22 and 49.96, averaging at 50.135.
Volume rose to USD826.63 million from the previous session’s USD650.8 million.
Source: Philippines News Agency