Philippine bourse bounces back on US Fed rate hike delay hope

The Philippine stock market bounced back on Thursday following hints from the U.S. Federal Reserve that a rate hike is not likely in September.

The bellwether Philippine Stock Exchange index jumped by 2.25 percent or 154.17 points to 7,022.09, while the broader all-share index rose by 1.91 percent or 74.93 points to 4,006.37.

Trading volume reached 2.46 billion shares worth 14.58 billion Philippine pesos (312.67 million U.S. dollars) with 139 stocks advancing, 45 declining, and 34 remaining unchanged.

All six counters were up.

Thursday's rally marks the third straight day that the index closed higher following the sharp drop of the market on Monday, when the composite index followed the global decline of market prices.

"The rebound of the market is a welcome relief amidst the uncertainties in the global markets. The second quarter growth numbers highlight the resilience of the economy despite challenges abroad and we hope that investors continue to look at the Philippines as a viable investment," PSE Chairman Jose T. Pardo said.

The Philippine stock market's three-day gain came after a 619- point rally of the Dow Jones industrial average index.

U.S. investors cheered on expectations there would not be any increase in interest rates next month on lack of "compelling reasons."

Stocks in the 30-company index picked up. These include Ayala Land, Inc., BDO Unibank, Inc., and heavyweight Philippine Long Distance Telephone Co.