Index climbs on hopes Fed will keep stimulus

MANILA, Philippines - Local share prices gained on hopes that the US Federal Reserve will maintain its stimulus program until early next year.

The Philippine Stock Exchange index gained 0.48 percent or 31.51 points to 6,635.11, posting its second straight day in the green, while the broader all shares index rose 0.41 percent or 16.30 points to 3,997.37.

“Markets keep getting just the right dose of positive news to sustain advances and hold above the 6,600-line ahead of the bulk of third quarter earnings numbers expected to be released in the weeks bridging October and November,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

Calaycay said the local market rode the optimism that weak US jobs data bolsters the case for the US Fed to push back its tapering plans.

Wall Street pinned its hopes on the continuation of the easy money policy. The Dow Jones industrial average added 0.49 percent or 75.46 points to close at 15,467.66 while the broader Standard & Poor’s 500 index rose 0.6 percent or 10.01 points to 1,754.67.

However, fears of a tighter money policy in world’s second largest economy China reversed early gains of regional markets.

Japan’s Nikkei lost 1.95 percent or 287.20 points to 14,426.05 while Hong Kong’s Hang Seng index fell 1.36 percent or 316.04 points to 22,999.95.

In the local bourse, most counters were in the green, led by holding firms that climbed 1.26 percent or 75.39 points to 6,055.02. But the service sector eased 0.48 percent or 9.77 points to 2,009.77.