Stocks rose for a third day, sending the benchmark index above the 7,000-point mark for the first time in three weeks, amid a global rally that extended into Asia.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 155 points, or 2.3 percent, to close at 7,022.38 Thursday. The bellwether returned to the positive territory, with a 1-percent gain since the start of the year.
The heavier index, representing all shares, also advanced 68 points, or 1.7 percent, to settle at 4,221.63, on a value turnover of P7.5 billion. Gainers outnumbered losers, 120 to 63, while 44 issues were unchanged.
Five of the six major indices ended in the green, with the exception of mining and oil. Among the 20 most active stocks, 17 issues advanced, led by property developer Ayala Land Inc. which climbed 5 percent to P34.45 and SM Prime Holdings Inc. which rose 5 percent to P28.65. Conglomerate JG Summit Holdings Inc. gained 4.8 percent to P72.25, while PLDT Inc. added 4.2 percent to settle at P1,370.
Meanwhile, most Asian markets closed higher Thursday, with investors betting the European Central Bank will prolong its stimulus program, while the positive mood helped lift riskier currencies.
With the economic outlook in Europe still looking fragile and political uncertainty gripping world markets, analysts expect the ECB will wind up its latest policy meeting with a pledge to continue its cash-pumping measures for another six months.
The speculation has helped refresh a waning global assets rally that began after Donald Trump’s US election win, which traders predict will usher in a time of huge spending, tax cutting and deregulation.
Such positive sentiment has propelled the Dow on Wall Street to successive records—and put it on course to hit 20,000 for the first time—while the S&P 500 also clocked up an all-time high Wednesday.
Hong Kong added 0.5 percent in the afternoon and Tokyo ended 1.5 percent up. Seoul surged two percent, while Sydney Taipei and Manila piled on more than one percent.
However, Shanghai dipped 0.2 percent despite Chinese trade data showing a forecast-beating jump in imports and exports that indicate the world’s number two economy continues to stabilize.
“The market is optimistic that the ECB will extend its quantitative easing programme at current levels for a further six months,” Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, told Bloomberg News.
However, she also said: “There is a real risk of unpleasantness in European bond, equity and currency markets if [ECB head Mario] Draghi doesn’t at least meet expectations.”
Japanese traders brushed off data showing the world’s number three economy grew slower than initially thought, with the government offering a glimmer of hope by revising up its forecasts for the first and second quarter of 2017.
On currency markets the dollar dipped against most of its peers, although expectations the Federal Reserve will ramp up interest rates next week are keeping it buoyant.
The greenback retreated more than one percent against the New Zealand dollar after an upbeat economic reading by the country’s central bank chief, who also said he did not foresee any fresh interest rate cuts.
Most other regional currencies—which have been hammered by the dollar in recent weeks—also performed well. The Australian dollar added 0.5 percent, South Korea’s won gained 0.9 percent and the Indonesian rupiah was 0.3 percent higher. With Bloomberg, AFP