At the end of trading, the 30-company composite index closed over two percent higher, or by 30.24 points to 1,469.07 while the broader All Shares index nudged up 8.52 points to 767.47.
Led by property and banking stocks, a total of 71 issues advanced, swamping the 22 declines and 41 unchanged issues.
Turnover was likewise robust, as the value of trades that changed hands continue to surpass the P1-billion mark, hitting P1.6 billion. During the most part of last year, trading volume went down by an anemic average of P300 million as players generally shied away from the equities market due to the negative sentiment brought about by political turmoil and economic hardships.
The market’s surge also came on the heels of an extended trading session to take effect today, which most market participants believe would further boost volume as an extra one and half hours in the afternoon would enable brokers to extend gains in the morning and keep in track with the movements of other global markets.
But in contrasting fashion, most of the regional bourses trekked downwards, with only the Thai and Malaysian markets moving in step with the Philippines.
In addition, the market also discounted the latest balance of trade report which showed a slowdown in imports and a contraction in exports, leading to a lower trade surplus for the past year.
Not surprisingly, the property companies and banking institutions gained the most attention as they are the first expected beneficiaries of the dropping interest rates.
SM Prime Holdings and Ayala Land were the most heavily traded issues, along with Belle Corp. and Filinvest Land Inc. Among banks, heavyweights Metrobank, Equitable PCI Bank and BPI also cornered a sizable share of trades.
Last week, the Bangko Sentral trimmed down its overnight rates by another 25 basis points to its lowest levels since 1995. The overnight borrowing rate now stands at 7.25 percent while the overnight lending rate is at 9.5 percent.
As a result, Treasury bill rates – the benchmark of shot-term credit – also dropped for the seventh straight week, with the bellwether 91-day bills down to 7.092 percent, its lowest since February 1987.