MANILA, Philippines (Xinhua) - The Philippine stock market closed the week higher on renewed speculation that the US Federal Reserve will delay additional cuts to its stimulus program.
The bellwether Philippine Stock Exchange index posted its best week by far, closing the week with more than 100-point gain or 1.7 percent after ending Friday's session with a marginal gain of 0.20 percent or 11.94 points. This put the index's level at 6,113.66, while the broader all-share index added 0.19 percent, or 6.87 points, to settle at 3,705.56.
Trading volume reached 816.61 million shares worth P4.93 billion ($109.96 million) with 82 stocks advancing, 59 declining, while 49 were unchanged.
Of the six counters, only the service sector bucked the trend.
Analyst Gregg Ilag of AB Capital Securities, Inc. said investors also took notice of the strong profits of listed companies for the fourth quarter last year.
"US Federal Reserve Chairman Janet Yellen, during her first speech as chairman, said that the incremental cuts to stimulus is based on their forecast of the labor market and inflation," Ilag said.
"She also insisted that the tapering asset purchases is not on a preset course," he said.
Yellen's testimony, Ilag said, will likely influence the global market's sentiments next week. Ilag said investors will look for hints to future changes in monetary policy which should drive short-term market returns.
As such, the analyst said the local market might trade sideways next week given that near term catalysts will depend on global market sentiment.
"We will wait for pullbacks to attractive support levels before positioning on our preferred sectors for a better risk and reward trade-off," Ilag said.
Stocks in the 30-company index, however, closed mixed. Share prices of heavyweight Philippine Long Distance Telephone Co., JG Summit Holdings, Inc., and Alliance Global Group, Inc. were sold down.
However, Ayala Corp., Robinsons Land, Corp., and Ayala Land, Inc. were picked up.