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Philippine shares rally for 5th session on favorable outlook, low rates

Philippine shares rally for 5th session on favorable outlook, low rates

Philippine stocks surged for the fifth session Wednesday as investors took advantage of low interest rates and an upbeat economic outlook to accumulate shares across a range of sectors.
The benchmark Philippine Stock Exchange Index advanced 45.41 points, or 1.4 percent, at 3,244.75, its best close since March 13, 1997.
The index had gained 5.2 percent in the previous four sessions, and briefly breached the 3,250-point resistance level in Wednesday's trading.
"The pullback indicates we're due for a correction, but if there will be more positive news that will come out before the market opens tomorrow, we may still go up," said First Grade Holdings managing director Astro del Castillo.
"It's really hard to catch a speeding train. Nearly all investors want to take advantage of opportunities here in the market so they're rushing in," he said, citing low interest rates, the positive fiscal and economic outlook and immense market liquidity.
The low interest rate environment is expected to stoke property demand and encourage bank lending.
Conglomerate SM Investments, with interest in property development and banking, was the most actively traded, up 5.7 percent at 370 pesos.
Philippine Long Distance Telephone Co. gained 0.7 percent at 2,740 pesos following the 4.9 percent advance by the company's American depository receipts in New York overnight.
Advancers led decliners 67 to 49, while 49 stocks were unchanged.