Phl stocks rally as US Fed keeps stimulus program

MANILA, Philippines (Xinhua) - The US Federal Reserve's decision to maintain its bond-buying program sent local equities in the Philippines rallying by as much as 2.81 percent today.

The bellwether Philippine Stock Exchange index added 177.74 points to close at 6,511.70. The broader all-share index rose by 2. 38 percent or 91.34 points to 3,942.67.

Trading volume reached 1.77 billion shares worth P15.96 billion ($370.73 million) with 133 stocks advancing, 36 declining, and 35 unchanged.

All six counters were up, especially the property sector.

"Players took their guidance overseas especially after the US Fed adopted a status quo on their present $85 billion bond-buying program," 2TradeAsia.com said.

The move was a pleasant surprise among investors who are expecting a $10 billion to $15 billion cut on the stimulus program.

The US Fed said unemployment rate remains elevated and hence they want "to wait for more evidence that progress can be sustained" before making any adjustments.

"This will help support low and stable interest rates, which would perk up expectations for low borrowing costs," 2TradeAsia. com said.

Central Bank Governor Amando M. Tetangco Jr. said the Fed's decision will benefit emerging markets like the Philippines thanks to the steady inflow of foreign capital.

"The Fed actions should be positive for risk appetite for emerging markets, including the Philippines," Tetangco said in a briefing.

Stocks in the 30-company index were mostly up. These issues include Ayala Corp., Banco de Oro Unibank, Inc., and SM Investments Corp.