Banks lead record Philippine Stock Exchange surge

A strong rally yesterday led by banks pushed the Philippine Stock Exchange Index to a record 4822.08 points, up by  2.3%.

The climb is the highest in almost four months. Analysts believe the rally is sustainable partly because strong bank earnings are whetting the appetite of foreign and local investors. One analyst recommended banks, saying loan growth is being supported by low interest rates.

The rally was also sparked by SM Investments and Ayala Corporation, two of the Philippines’ largest conglomerates.

Banco de Oro, Bank of the Philippine Islands and Metropolitan Bank & Trust Company were among the top bank gainers.