Stocks snap 2-day skid on Fed assurance

MANILA, Philippines - The assurance that the US Federal Reserve’s easy monetary policy will continue for the foreseeable future encouraged investors yesterday to return to the stock market.

The main Philippine Stock Exchange index climbed 1.12 percent or 73.63 points to end at 6,648.35, snapping a two-day skid. It is the highest closing for the index since ending at 6,875.60 on June 10.

The broader All Shares index gained 1.11 percent or 44.47 points to 4,051.34.

Investor sentiment was carried by the statement of Federal Reserve chairman Ben Bernanke before US Congress that the planned tapering of the $85-million monthly buyback program late this year is not yet set in stone.

The Dow Jones industrial average inched up 0.1 percent or 18.67 points to 15,470.52 while the broader Standard & Poor’s 500 index advanced 0.3 percent or 4.65 points to 1,680.91.

Asian shares were also buoyed by the announcement, which will ensure continuous liquidity in financial markets.

Japan’s Nikkei 225 added 1.32 percent or 193.46 points to 14,808.50 while Singapore’s Straits Times picked up 0.31 percent or 9.87 points to 3,218.20.

Locally, all sub-indices were in the green, led by property firms that rallied 2.06 percent or 53.19 points to 2,635.47.

More investors showed up as value of shares traded jumped to P7.43 billion from P6.67 billion on Wednesday. There were three advancers for each decliner.