PHILIPPINE DAILY INQUIRER - May 5, 2009

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Stocks surge 2.8%

MANILA, Philippines—Local stocks rallied by 2.8 percent yesterday, taking cue from the bullish Wall Street trading overnight as investors across the globe cheered further signs that the global recession may be easing.

The main-share Philippine Stock Exchange index, which was on a winning streak for the third trading day, gained 60 points to close at 2,197.20. The relatively resilient first-quarter local corporate results and further slowdown in inflation also boosted confidence in stocks despite the cautious trading on index heavyweight PLDT.

Appetite for equities across the globe surged following a report in the United States of a 3.2-percent increase in Americans’ purchases of previously owned homes, which beat forecasts of zero growth. This news sent the S&P index 3.39 percent higher, reversing the losses earlier this year.

Global investor confidence also surged on reports that China’s manufacturing output increased for the first time in nine months, further boosting hopes that the world may have seen the worst of this downturn.

The local stock market rally yesterday was led by the property sector, whose index went up 8.33 percent. The counters for the financial sector, holding firms as well as mining and oil also jumped by 4 percent, 3.8 percent and 4.2 percent, respectively.