Index rebounds on strong US, Asian markets

MANILA, Philippines - Optimism over the continuation of low interest rates lifted the bellwether index back to the 6,800 level yesterday.

The Philippine Stock Exchange index rebounded 1.01 percent or 68.20 points to finish at 6,830.58, while the broader all shares index rose 0.81 percent or 32.78 points to 4,073.72.

“US Federal Reserve’s minutes showing the body is deep in discussions on the eventual exit strategy and normalization of policy and a number of earnings that either topped estimates or showed narrower contractions boosted US stocks wiping out all the previous session’s losses,” said Justino B. Calaycay Jr., an analyst at Accord Capital Equities Corp.

US stocks recovered overnight after discussions of US Fed officials showed that higher interest rates are not likely in the near future as the economy remains in need of support.

The Dow Jones industrial average added 0.97 percent or 158.75 points to close at 16,533.06, while the broader Standard & Poor’s 500 index improved 0.81 percent or 15.2 points to end at 1,888.03.

The optimism rubbed off on Asian equities, which also welcomed positive factory sector data in world’s second largest economy China. Japan’s Nikkei 225 rallied 2.11 percent or 295.62 points to 14,337.79.

Locally, all counters were in the green, led by holding firms that advanced 1.28 percent or 78.33 points to 6,191.72 while the industrial sector closed 1.01 percent or 102.91 points higher at 10,340.92.