Index nearly breaches 7,000 level

MANILA, Philippines - Shares prices rallied yesterday, testing the 6,900 resistance level following the release of sluggish US jobs data which could mean a delay in the rate hike of the US Federal Reserve.

The Philippine Stock Exchange index (PSEi) surged 111.32 points, or 1.62 percent, to finish at 6,961.93, while the broader All Shares index ended at 4,011.55, up 54.36 points or 1.37 percent.

According to data from the US government, job growth was recorded at 142,000 last month, below expectations of more than 200,000.

The recently released jobs data raised doubts on whether the US economy was strong enough for the Fed to raise rates by the end of the year.

Jason Escartin of F. Yap Securities said the sluggish jobs data would provide a picture of the US economy even as the delay in the increase in Fed rates could be seen as a boon for the equities market including the local equities mart.

All other indices closed in positive territory, a marked turn around from last week’s sluggish trade.

Value turnover reached P9.15 billion. Advances outnumbered decliners 112 to 65, while 32 stocks were unchanged.

Gainers include BHI Holdings Inc., SM Prime Holdings, Metropolitan Bank and Trust Co. and Bloomberry.

Yesterday’s worst performers include Chemical Industries of the Philippines which declined 29.62 percent as well as Grand Plaza Hotel Corp.