Share prices surged Friday to propel the benchmark index to a new all-time high after the European Central Bank announced a huge cash injection to kickstart the eurozone economy.
The Philippine Stock Exchange Index jumped 132.62 points, or 1.8 percent, to 7,548.93 to eclipse the previous record of 7,490.88 registered on Jan. 14 this year. Gainers overwhelmed losers, 105 to 67, with 45 issues unchanged.
JG Summit Holdings Inc. of retail and airline tycoon John Gokongwei rose 2.1 percent to P63.40, while Metropolitan Bank & Trust Co., the second-biggest lender, climbed 3.3 percent to P92.95.
Ayala Land Inc., a major builder, gained 1.6 percent to P35.40, while parent Ayala Corp. rallied 2.4 percent to P711.
First Gen Corp. of the Lopez Group surged 6 percent to P29.05, while Unversal Robina Corp., the largest snack food maker, added 1.7 percent to P200.
SM Prime Holdings Inc. of retail tycoon Henry Sy, the biggest property developer, advanced 2.6 percent to P19, while Cebu Air Inc., the largest budget carrier, climbed 4.4 percent to P93.30.
Technology stock Xurpas Inc. jumped 5.9 percent to P12.16, while ABS-CBN Holdings Corp., the biggest broadcaster, rose 6.5 percent to P51.65.
The rest of Asian equity markets rallied Friday, while crude prices surged on news the monarch of oil kingpin Saudi Arabia had died.
The ECB’s unprecedented decision to pump tens of billions of dollars a month into financial markets sent the euro plunging to 11- year lows against the dollar and also fueled a buying spree in US and European stock markets.
Tokyo jumped 1.05 percent, or 182.73 points, to 17,511.75 and Sydney added 1.51 percent, or 81.90 points, to 5501.80, with energy firms lifted by the stronger oil prices. Seoul gained 0.79 percent, or 15.27 points, to 1,936.09.
Hong Kong climbed 1.34 percent, or 327.82 points to 24,850.45 and Shanghai added 0.25 percent, or 8.42 points, to 3,351.76.
After a much-anticipated policy meeting Thursday ECB chief Mario Draghi said it would buy 60 billion euros ($69 billion) a month of private and public bonds from March until September 2016, with the total program valued at over 1.0 trillion euros.
Analysts had forecast 50 billion euros. The program, known as quantitative easing, had been widely predicted following a string of weak inflation figures out of the eurozone that culminated in a fall in prices in December for the first time in five years.
That sparked fears of a spiral of deflation and a long period of anaemic economic growth in the 19-nation currency bloc.
“Market expectations were high and Draghi managed to surprise even the highest of expectations,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News.
“It clearly puts the ECB on the front foot. It should help to stabilise European growth.”
The announcement means the bank will effectively be printing more euros, pushing down the value of the single currency.
At one point Thursday the euro tumbled to an 11-year low of $1.1316 before recovering slightly to $1.1359 by the end of the day. On Friday afternoon it bought $1.1347.
It was also at 134.11 yen Friday, against 134.63 yen in US trade and well down from 136.80 yen earlier Thursday in Asia.
The dollar was at 118.17 yen compared with 118.52 yen in New York.
The two main global crude contracts surged Friday following the death of King Abdullah of Saudi Arabia, the key member of the Opec cartel that has refused to lower production despite a supply glut. With AFP