MANILA, Philippines – Share prices rallied yesterday, mirroring the regional uptrend after the Bank of Japan stunned markets by adopting negative interest rates in its boldest attempt yet to spur the economy.
The main composite index soared 124.24 points, or 1.89 percent, to close at 6,687.62, while the broader All Shares index gained 61.52 points, or 1.64 percent, to finish at 3,812.87.
Analysts said the local equities market joined regional peers in rallying following a surprise from the Bank of Japan, which cut interest rates to -0.1 percent to stimulate the economy.
In a statement, the Bank of Japan even said that it might “cut the interest rate further into negative territory if judged as necessary.”
Jason Escartin of 2TradeAsia.com said: “local equities closed in the green aided by an afternoon rally after the Bank of Japan surprised investors across the region with a negative interest rate policy.”
Gainers were led by JG Summit, which rose 6.86 percent, Megaworld, up 4.39 percent and San Miguel Corp., which gained 4.14 percent.
“The PSEi broke its major resistance at 6,600. The next minor resistance is at 6,700 then 7,000,” said Paolo HIzon of Unicapital Securities.
Total value turnover stood at P9.79 billion.