Index climbs on IMF’s optimism on Phl economy

MANILA, Philippines - The local benchmark index returned to its winning ways yesterday, boosted by the International Monetary Fund’s positive amendments to the country’s growth forecast.

The Philippine Stock Exchange (PSEi) rose 0.29 percent, or 21.29 points, to 7,474.10, snapping a two-day losing skid, while the All Shares index grew 0.05 percent or 1.99 points to end at 4,368.12.

The PSEi was able to clinch a new intra-day record high yesterday at 7531.94, surpassing the previous record of 7530.41 it made last January 14.

“Optimism spurred buying after IMF forecasted above-average GDP growth for the Philippines, trumping forecasts for ASEAN-5 & the rest of the world,” said Jason T. Escartin, investment analyst at F. Yap Securities.

IMF raised its economic growth projections for the Philippines to 6.6 percent and 6.4 percent this year and the next, respectively, despite cutting the global outlook.

As a result, local market was in a positive mood during the morning trade before it succumbed to profit-taking after noon break. Still, the benchmark index managed to finish in the positive zone.

Counters concluded with two firms closing in the red while the rest finished in the green. Mining and oil firms and industrial firms slipped 0.59 percent and 0.49 percent, respectively.

On the contrary, property firms picked up 0.50 percent followed by financials which improved 0.36 percent.

But despite the market’s positive finish, decliners continued to dominate advancers, 98 to 76, while 54 stocks were unchanged.