The local stock market landed above the 7,200 level after the US Federal Reserve slashed interest rates as expected.
The main index added 46.26 points or 0.65 percent to close at 7,202.16 led by the surge in Mining and Bank stocks with only Industrials declining. Volume jumped to 698 million shares worth P8.16 billion as gainers beat losers 113 to 78 with 62 unchanged.
“Philippine shares closed above the 7,200 mark on Thursday, buoyed by the Fed's first rate cut in four years, lowering interest rates by 50bps to a range of 4.75 percent to 5.00 percent,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Research Manager Japhet Tantiangco said "The local market rose this Thursday after investors positively accepted the Federal Reserve’s 50 basis points policy rate cut which is expected to give a big boost to the US economy."
"In addition, the market cheered the Bangko Sentral ng Pilipinas’ plan to cut banks’ reserve requirement ratios substantially this year," he noted.