Local shares rebounded strongly Tuesday to close above the 6,400 level as the government plans to accelerate spending during the first quarter to boost the do-mestic economy.
The 30-company Philippine Stock Exchange index surged 104.88 points, or 1.67 percent, to close at 6,401.96, while the broader all-shares index rose 38.92 points, or 1.11 percent, to end at 3,548.44.
The peso remained steady against the US dollar, closing at 58.89 Tuesday compared with 58.899 Monday.
Philstocks Financial Inc. research head Japhet Tantiangco said the local market bounced back on hopes that the Philippine economy will regain its growth momentum.
“This comes amid the government’s plan to spend P1.44 trillion this first quarter to re-accelerate the economy,” Tantiangco said.
Adding to the market’s renewed optimism is a potential rate cut by the Bangko Sentral ng Pilipinas.
All sectors ended in the green, led by mining and oil, which rallied 4.62 percent fol-lowing the previous day’s slump. Property advanced 2.97 percent, while services rose 1.73 percent. Trading was active as value turnover reached P6.58 billion.
Foreign investors turned net buyers with inflows reaching P236.4 million.
SM Prime Holdings Inc. was the day’s top index gainer, rising 4.72 percent to P22, while Emperador Inc. was the main index laggard, declining 1.65 percent to P15.46.
