PHL shares rally as BOJ drops interest rates

Share prices on the Philippine Stock Exchange got a boost from late rally on news that the Bank of Japan adopted a negative yield rate policy.

Analysts said a confluence of factors was already in place that kept the equities market in a buoyant mood through most of the session.

"There was really no single factor driving the market, but the 2015 GDP was better than expected, the US markets were up, and this is the end of the month so there is also window dressing ," said Oliver Plana, head of sales at Asiasec Equities Inc.

The benchmark PSEi gained 124.24 points or 1.89 percent to 6,687.62 at the closing bell. The All Shares rose by 61.52 points or 1.64 percent at 3,812.87.   

"Local equities closed in the green, aided by an afternoon rally after the Bank of Japan (BoJ) surprised investors across the region with a negative interest rate policy," according to a daily market comment of 2TradeAsia.com.

Markets in the region were also buoyed by the full-year 2015 GDP to be reported by the US. "This has also been priced into the markets that's why markets are up," said Victor Felix, equity analyst at AB Capital Securities Inc.

Brokers usually "window dress" their market positions at the end of a period by ditching poor performing stocks in favor of high-flyers to make their portfolios look good.

Plana noted window dressing activities during the morning trade.

More than 1.159 billion shares, valued at P9.789 billion, changed hands. Gainers led losers, 116 to 53, while 46 issues were unchanged.

On Thursday, the Philippine Statistics Authority reported the gross domestic product (GDP) grew by 5.8 percent last year. – VS, GMA News