Philippine stocks closed above the 7,000 level for the first time in 19 months, after several attempts this week on positive sentiments overseas.
The bellwether Philippine Stock Exchange index (PSEi) rallied by 79.79 points, or 1.15 percent, to close at 7.024.67 Thursday, while the broader all-shares index jumped 25.44 percent to reach 3,791.65.
“The PSEi finally closed above the 7,000 level for the first time in more than 19 months as investors reacted to a relatively favorable US August headline inflation print as well as overnight tech-driven rally in US stock markets,” said China Bank Capital managing director Juan Paolo Colet.
The latest inflation report boosted hopes the US Federal Reserve would implement a rate cut in its policy meeting next week.
Colet said investors also cheered the statement from National Economic and Development Authority Secretary Arsenio Balisacan that the Philippine gross domestic product could grow faster in the second half of the year.
“If the 7,000 breakout is sustained in the next few days, the market may attempt to hurdle the next resistance at 7,100,” Colet said.
All sectoral indices ended in the green, led by property which climbed 1.4 percent, followed by services which advanced 1.28 percent. Holding firms rose 1.17 percent, while industrial went up by 0.64 percent
Value turnover turned weak at P4.67 billion.
Bloomberry Resorts Corp. was the top gainer among PSEi member companies, rising 3.01 percent to close at 8.21, while Globe Telecom shed the most, declining by 1.52 percent to P2.202.
Meanwhile, the peso traded weaker Thursday to close at 56.20 against the US dollar, down from 55.97 Wednesday.
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