MANILA, Philippines - Local share prices recovered from a selloff, driven by a strong domestic growth outlook and modest gain in Wall Street following the nomination of Janet Yellen as new head of the Federal Reserve.
The Philippine Stock Exchange index rebounded 0.91 percent or 58.22 points to 6,435.97, while the broader all shares index picked up 0.9 percent or 34.69 points to 3,892.06.
“The market was mostly higher due to the modest gain in the US. This is backed up by the official nomination of Fed vice-chair Janet Yellen to be the next head of the US central bank,†said Abbygayle Estrella, equities analyst at AB Capital Securities Inc.
Estrella said the market also awaits the dialogue of US President Barack Obama with the House Republican leaders, which might avert a US debt default.
“Hidden from view as focus trains on the US budget impasse and the borrowing limit gridlock, are the continuing flow of optimistic outlook for the domestic economy,†said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.
Goldman Sachs upgraded its Philippine growth forecast to 6.8 percent this year, up from the 5.5 percent it announced in February.
The local market tracked Wall Street, which posted gains on hopes that the US Congress impasse will end soon. The Dow Jones industrial average added 0.18 percent or 26.45 points to 14,802.98 while the broader Standard & Poor’s 500 index rose 0.1 percent or 0.95 points to 1,656.40.