MANILA, Philippines (Xinhua) – The Philippine stock market bounced back on Tuesday following the strong performance of US equities.
The bellwether Philippine Stock Exchange index rose by 0.61 percent, or 41.47 points, to 6,852.81, while the broader all-share index added 0.74 percent, or 30.35 points, to 4,135.98.
Trading volume reached 1.79 billion shares worth p9.7 billion ($221.94 million) with 126 stocks advancing, 61 declining, and 38 unchanged.
Of the six counters, only the financials bucked the trend.
“The emotional pendulum swung back to positive after the Dow hit a fresh record reflecting a resurgence of confidence in the world’s largest economy,” analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.
The Dow Jones industrial average index jumped by 0.68 percent, or 112.13 points, to reach another record high at 16,695.47 on Monday.
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Calaycay said activity in the market picked up behind news of acquisitions while expectations that China’s leaders will keep an accommodative stance amid weak economic numbers provided added lift.
In the US, the Federal Reserve kept to its tapering pace and reiterated its preparedness to continue supporting the economy.
“As the US earning season begins to unwind, the impetus has not been as strong as many believed. Nevertheless, with more than half of the firms having released their reports, there is little reason for the bears to show up,” Calaycay said.
He said US companies have reported better-than-forecast numbers and this helped boost investors’ confidence.
Stocks in the 30-company index closed mixed. Among those that rallied were Ayala Land, Inc., Megaworld Corp., and Ayala Corp.
