US rate freeze lifts share prices

MANILA, Philippines - Share prices continued to climb as investors welcomed the US Fed decision to hold off on raising interest rates.

The benchmark Philippine Stock Exchange index (PSEi) inched up 7.92 points, or 0.11 percent, to finish at 7,131.91, while the broader All Shares index gained 14.24 points or 0.35 percent to finish at 4,076.60.

Analysts said the gains reflected some relief on the part of investors as the Fed delayed the rate hike.

“There’s short-term relief. They just postponed the inevitable,” said Joseph Roxas, president of Eagle Equities.

Fed chairman Janet Yellen was quoted as saying the outlook abroad has appeared to become less certain, adding recent falls in US stock prices and a rise in the value of the dollar already were tightening US financial market conditions.

The Fed was focusing on the slowdown in China and emerging markets, Yellen said, noting there might be a risk of a more abrupt slowdown in China.

In the local front, the industrial, holding and property indices all ended in negative territories.

Value turnover amounted to P10 billion. Advancers edged out decliners, 100 to 80 while 33 stocks were unchanged.