Index rallies on hopes of strong US growth

MANILA, Philippines - The local benchmark index shattered yesterday its previous record for the year on the back of an upgraded third quarter US gross domestic product outlook.

The Philippine Stock Exchange index (PSEi) surged 0.96 percent or 69.74 points to close at 7,356.59, beating the year’s previous high of 7,355.29 recorded last Sept. 24.

It was also the PSEi’s highest finish for over 18 months. The local index closed 7,392.20 on May 15, 2013.

The All Shares index likewise gained 0.77 percent or 33.05 points to end at 4,325.39.

“We’re riding on positive international news, primarily led by the revision in the US GDP growth. This provided a big boost in equities in general,” said Alex Tiu, analyst at AB Capital Securities Inc.

The US government on Tuesday revised its third quarter GDP forecast to 3.9 percent from a previous 3.5-percent growth..

Aside from the bullish outlook on the US economy, Tiu said Wednesday’s ascent was also brought about by investors positioning themselves for today’s Philippine third quarter GDP result.

“The expectation for the country’s economy is positive, so this affected investor’s appetite,” he added.

All counters ended in the green, with holding firms leading the charge with a growth of 1.30 percent or 82.13 points.