Index rallies on hopes of further delay in US rate hike

MANILA, Philippines - The benchmark Philippine Stock Exchange index (PSEi) rallied  yesterday following reports of weak US  economic  data, raising  expectations the US Federal Reserve will delay hiking interest rates, analysts said.

The main composite index returned to the 7,000 mark, surging 120.63 points to close at  7,045.40, or 1.74 percent, while the broader All Shares index gained 56.88 points, or 1.42 percent, to finish at 4,046.37.

All other indices stayed in positive territory as it tracked the upward swings of Asian stock markets.

Asian shares rose to two-month highs   and the dollar struggled near multi-week lows after weak US economic data further boosted doubts whether the Fed will raise interest rates this year.

Japan’s Nikkei gained 1.3 percent, ignoring soft domestic data while Indonesia and Malaysia indexes rose 0.9 percent and 0.4 percent respectively.

Data from the US showed that retail sales barely rose in September, indicating the economy was losing momentum in the face of slowing global growth.

Retail sales edged up 0.1 percent last month and August sales were revised down to show them unchanged instead of rising 0.2 percent.

Excluding automobiles, gasoline, building materials and food services, retail sales slipped 0.1 percent last month after a downwardly revised 0.2 percent gain in August, data also showed.

During yesterday’s trading, value turnover stood at P6 billion. Advancers stayed ahead of decliners, 121 to 66 while 37 stocks were unchanged.