Index soars as investors turn optimistic

MANILA, Philippines - Share prices climbed yesterday as risks from abroad have started to subside, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) surged 107.43 points, or 1.57 percent, to end at 6,932.81, while the broader All Shares index gained 53.78 points, or 1.36 percent, to finish at 4,001.22.

All other indexes closed in positive territory except for the mining and oil index which declined by 126.79 points.

Value turnover stood at P5.975 billion and advancers edged out decliners 108 to 60 while 47 stocks were unchanged.

Analysts said that the market has become less volatile as risks from abroad have started to subside.

Astro del Castillo, managing director of First Grade Finance Inc. said that as risks from overseas started to subside, investors returned to the market.

“Investors were hungry for bargains today as risks from overseas started to calm investors. News about a better third quarter gross domestic product (GDP) further boosted trading. However, the pulse of the market remains cautious as shown by the thin value of stock transactions,” he said.

In recent months, investors have been shying away from the market due to the lingering concerns on the slowing economy of China as well as the impending rate hike of the US Federal Reserve this December.

The US Fed is widely believe to raise rates this December on improving economic indicators in the US.