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On clearer Fed tapering, the stock market index and the peso both rose.

The strengthening of both the local bourse and the Philippine peso, which gained to the 49-level on Thursday, was fuelled by risk-on emotions, partially due to a clearer schedule for the Federal Reserve’s asset purchase reduction.

The Philippine Stock Exchange index (PSEi) climbed 100.68 points, or 1.41 percent, to 7,233.26 points.

The S&P 500 gained 1.41 percent to 3,836.11 points or 53.52 points.

Industrials, 1.54 percent; Holding Firms, 1.27 percent; Financials, 0.77 percent; Mining and Oil, 0.76 percent; and Property, 0.55 percent, ranked first and second, respectively, among the sectoral indices.

A total of 2.92 billion shares worth PHP87.52 billion were traded.

At 109 to 65, advancers outnumbered decliners, with 54 shares remaining unchanged.

“Philippine shares climbed this session as investors bet that the first reported (coronavirus illness 2019) Omicron cases would be confined and after the Fed provided more clarification on when it would begin tapering,” Regina Capital Development Corp. head of sales Luis Limlingan said.

The Federal Reserve said in January 2022 that it would begin cutting asset purchases to USD60 billion per month.

As long as inflation continues high, Fed policymakers have hinted at three interest rate hikes next year.

Meanwhile, the local currency strengthened against the US dollar, ending the day at 49.96 from 50.27 the day before.

It opened at 50.2 and moved between 50.22 and 49.96, with a daily average of 50.135.

Volume increased to USD826.63 million from USD650.8 million the previous day.

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