PSEi surges ahead of US Fed meeting

MANILA, Philippines - Investors returned to the local equities market yesterday ahead of the US Federal Reserve decision on whether to raise interest rates for the first time since 2006 later this week.

The benchmark Philippine Stock Exchange index (PSEi) surged 157.80 points, or 2.28 percent, to close at  7,069.18.

Similarly, the broader All Shares index closed at 4,025.61, higher by 61.96 points or 1.56 percent.

Analysts said it was a fitting welcome to the end of the ghost month although value turnover remained low at P5.178 billion from the usual P6 to P7 billion.

Advancers edged out decliners, 101 to 64 while 37 issues remain unchanged.

Luis Limlingan, managing director of Regina Capital said investors are also trying to anticipate the move of the US Federal Reserve.

“They’re just trying to anticipate the Fed’s move and also the market is seeing more investors because it’s the end of the ghost month,” Limlingan said.

Rizalina Mantaring, president and CEO of Sunlife Financial Philippines said the market would continue to recover in the long-term because the country’s fundamentals remain good. “The short-term view is affected by sentiment but in the longer-term, the view is positive because our fundamentals are very good,” she said.