A deluge of local and foreign buying spurred Philippine shares to a rally that gave the PSEi a much needed lift beyond 6,500 level Thursday, after the US Federal Reserve announced it will continue buying bonds at $85 billion a month.
Global markets were relieved the Fed kept its bond purchases, said Astro del Castillo, managing director at First Grade Holdings Inc. "At least confidence is still there. Everyone’s ecstatic with the news," Del Castillo told GMA News Online.
"Liquidity in the global markets still remain and foreign funds are flowing and will flow back to emerging markets," he added.
The main PSEi advanced by 117.74 points or
2.81 percent to 6,511.70 at the close, after surging up to 6,578.12 early in the morning session.
The broader all-shares index jumped by 91.34 points or 2.38 percent to 3,924.67.
After a two-day meeting, the US Fed said on Wednesday (Thursday in Manila)
it would continue buying bonds at $85 billion a month, Reuters reported. In a news conference following the announcement, Fed Chairman Ben Bernanke said a highly accomodative policy will remain in place until an improved outlook for the economy is confirmed, it added.
"When? It will always be a big question hanging over everyone's heads," Del Castillo said in response to the query until when the Fed will keep such policy in place.
More than 1.77 billion shares valued at P15.97 billion were traded. Advancers overshadowed decliners 133 to 36 while 35 stocks were unchanged. – VS, GMA News