MANILA – The local stock barometer rallied to a new nine-month high on Monday above 7,500 over sustained optimism about the incoming Duterte administration and after the Bangko Sentral ng Pilipinas (BSP) reduced cuts in overnight lending and borrowing rates.
The Philippine Stock Exchange index (PSEi) advanced 74.95 points or 1.008 percent to 7,511.74 from 7,436.79 finish.
Monday’s closing level of PSEi was its highest since Aug. 12, 2015 when the index closed at 7,495.43.
A&A Securities research and marketing head Justino Calaycay, Jr. attributed the market’s rally to spillover of investors’ sentiments over the incoming Duterte government, especially as it intended to continue various programs of the current Aquino administration.
Calaycay said BSP’s decision to reduce rates also provided impetus for returns in the stock market.
Except the services sub-index, all counters closed in the positive territory led by mining and oil that surged 2.50 percent.
A total of 2.33 billion shares valued at Php7.72 billion changed hands.
Advancers outpaced decliners, 127 to 73, while 47 issues unchanged.