MANILA, Philippines (Xinhua) – The three-digit gain of the US equities lifted the Philippine stock market for the second time today.
The bellwether Philippine Stock Exchange index jumped by 3.42 percent, or 209.06 points, to 6,328. The broader all-share index rose by 3.14 percent, or 17.96 points, to 3,877.61.
Trading volume reached 3.56 billion shares worth P12.11 billion ($278.99 million) with 139 stocks advancing, 37 declining, and 32 unchanged.
All six counters were up.
“On a slow news day from the domestic front, investors kept eyes turning on unfolding events overseas. With share prices in Europe posting decent gains and US stocks extending a triple- digit advance, local counters joined its regional peers in the green,” analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.
European markets were supported by the easing of concerns over China’s credit crunch and a better-than-anticipated consumer confidence numbers.
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Likewise, American investors appear to have found incentive to enter the equities despite reports that the economy is growing a less-than-expected pace.
First quarter gross domestic product was revised to 1.8 percent, significantly lower than the 2.4 percent preliminary estimate as the gains in household purchases, accounting for 70 percent of growth, was lowered to 2.6 percent from the 3.4 percent estimate last month.
“Sentiments have turned yet again, almost seemingly at a single flip. The main source of fears, namely the US Fed and the Chinese credit crunch, appears to have faded back into the woodwork,” Calaycay said.
The analyst, however, was quick to point out that this should not be interpreted to mean that the road ahead has been cleared of risks.
Stocks in the 30-company index were mostly up. These issues include heavyweight Philippine Long Distance Telephone Co., Megaworld Corp., and SM Investments Corp.