Index rises on hopes of US debt deal

MANILA, Philippines - Coming from a mid-week holiday, the local bourse recovered as investors pinned their hopes on signs that the US debt default will be averted.

The Philippine Stock Exchange index climbed 0.63 percent or 40.87 points to 6,483.57, while the broader all shares index picked up 0.48 percent or 18.71 points to 3,923.52.

“Less than 24 hours before raising the US debt limit deadline expires, active markets in the broad Asian region shows confidence an agreement will be reached at the 11th hour,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

“There are signs that the US Congress will beat the deadline eventually,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

Del Castillo said investor confidence was buoyed by the Bangko Sentral ng Pilipinas’ statement that the country has put in place buffers to avoid massive shocks.

Most counters ended in positive territory, led by financial firms that firmed up 1.41 percent or 22.49 points to 1,613.25. But the industrial sector slightly fell 0.03 percent or 2.34 points to 9,317.59.

Turnover value improved to P7.48 billion from P4.02 billion on Monday. Philippine financial markets were closed on Tuesday for a Muslim holiday.

Advancers outplayed decliners, 87 to 55, while 52 stocks did not change.