Stocks advanced Friday, sending the benchmark index above 7,200 points for the first time in two months, as prospects of continued monetary stimulus in Europe and the US spurred demand for riskier assets.
The Philippine Stock Exchange index, the 30-company benchmark, rose 118 points, or 1.7 percent, to close at 7,236.38, its highest since Aug. 20. The gauge was also up 0.1 percent since the start of the year.
The heavier index, representing all shares, also rose 56 points, or 1.4 percent, to settle at 4,160.64, on a value turnover of P8.1 billion. Gainers overwhelmed losers, 119 to 56, while 40 issues were unchanged.
Port operator International Container Terminal Services Inc. was the biggest gainer among the 20 most active stocks, as it jumped 5.3 percent to P81.30.
BDO Unibank Inc., the largest lender, gained 3.4 percent to P107.50, while Energy Development Corp., a renewable energy producer, rose 3.3 percent to P6.97. Philippine Long Distance Telephone Co. added 3.1 percent to close at P2,364.
Meanwhile, Tokyo stocks extended a global equities rally Friday morning, with the benchmark index surging 2.35 percent on dovish comments from the European Central Bank and upbeat US corporate earnings.
Wall Street powered higher Thursday, following big jumps in eurozone markets after ECB chief Mario Draghi hinted at fresh stimulus measures to kickstart the bloc’s weak economy, as markets look to a possible easing moves by Bank of Japan policymakers next week.
“Mario Draghi and his elves at the ECB practically confirmed there will be an early Christmas present,” Evan Lucas, a market strategist at IG, said in a note.
“In short, all options are on the table for the ECB, also meaning the Bank of Japan and the Fed are now live events as well.”
After its latest policy meeting on Thursday, the ECB unveiled no new measures but Draghi said: “The degree of monetary policy accommodation will need to be re-examined at our December meeting.”
The comment inflamed talk the bank will ramp up its already vast bond-buying scheme — essentially printing more cash — in a bid to fan chronically weak inflation and kick-start torpid growth.
In Tokyo, the Nikkei 225 index advanced 433.97 points to 18,869.84 by the lunch break, while the broader Topix index of all first-section shares gained 2.10 percent, or 31.81 points, to 1,550.03.
The gains followed a 0.64 percent drop the previous day, as losses at drugmakers and profit-taking dragged the Nikkei lower. With Bloomberg, AFP