Phl stocks rally on strong economic fundamentals

MANILA, Philippines - Validations of a strong Philippine economy and several buying opportunities fueled yesterday’s rally, boosting the Philippine’s chance of becoming the best performing bourse in the Asia Pacific region.

The Philippine Stock Exchange index surged 2.65 percent or 164.42 points to 6,362.26, while the broader all shares index jumped 1.95 percent or 73.31 points to 3,836.80.

Investors, expecting limited economic impact of the US Federal government’s partial shutdown, returned to the market, analysts said.

“The substantial drops that proceeded from the Fed tapering fears in May, the prospect of a Syrian war late in August and the recent scare over a US government shutdown created, opened and presented unmistakable buying opportunities,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.

Confidence over local stocks was boosted after the Asian Development Bank (ADB) raised its 2013 economic growth forecast for the Philippines to seven percent from six percent in April. The country stands out as the bright side in emerging Asia, whose growth outlook was cut by ADB.

Asian stocks were mixed as investors digest the effects of the US government’s budget stalemate. Japan’s Nikkei 225 slumped 2.17 percent or 314.23 points to 14,170.49 while Hong Kong’s Hang Seng index added 0.55 percent or 124.62 points to 22,984.48.

Wall Street also shrugged off shutdown fears. The Dow Jones industrial average picked up 0.4 percent or 62.03 points to 15,191.70 while the broader Standard & Poor’s 500 index rose 0.8 percent or 13.45 points to 1,695.