MANILA, Philippine (Xinhua) – Investors repositioned themselves in the local equities today sending the local index rallying back to the 6,600 level.
The bellwether Philippine Stock Exchange index jumped by 1.12 percent or 73.63 points to 6,648.35. The broader all-share index rose by 1.11 percent or 44.47 points to 4,051.34.
Trading volume reached 2.35 billion shares worth P7.43 billion ($170.96 million) with 109 stocks advancing, 35 declining, and 46 unchanged.
All six counters were up.
Online brokerage 2TradeAsia.com said the lack of leads locally and overseas might have motivated some investors to seek guidance to the performance of the Dow Jones industrial average index on Wednesday. Dow Jones was up by 18.67 points ahead of US Federal Reserve Ben Bernake’s statement.
The US Fed’s statement is among the most awaited development as it would give investors hint on the next move of the US
“The spotlight might revert to institutional fund managers’ reaction to Fed chief Bernanke’s statement before the US Congress, specifically on indications as to when they would slow on their earlier planned $80 billion per month bond purchase plan,” 2TradeAsia.com said.
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Analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment that since the local index hit the low of 5,789.06, it has drawn a “higher high, higher low pattern in the succeeding 15 sessions.”
The narrowing gap between the resistance line and support line, he said, indicates that investors are quick to withdraw positions to cap rallies but are even quicker to retake such positions to buffer the fall.
“Long-term money however is exercising more patience, however, either opting to hold or deferring buying activity to a more significant drop in prices,” he said.
Stocks in the 30-company index were mostly up. These issues include index heavyweight Philippine Long Distance Telephone Co., SM Investments Corp., and the Bank of the Philippine Islands.