The PSEi got a boost in the afternoon session to close in the 7,300 territory as investors were encouraged by the brighter prospects of the Philippine economy, compared with other markets in the region that have set lower economic targets.
The bellwether PSEi reversed losses and closed the session with a 0.92 percent increase or 66.75 points to 7,313.87. The broader All Shares advanced by 0.67 percent or 29.27 points to 4,415.13.
Luis Limlingan, managing director of Regina Capital Development Corp., said investors were pushed to buy in the afternoon session, as the previous economic outlook for the Philippines stood out among its Asian peers.
“Philippine markets bucked the downtrend in the afternoon, given the much rosier prospects compared with counterparts,” Limlingan said, citing China’s lower economic growth target of 6.5 percent this year from the 6.5 percent to 7 percent target for 2016.
The government and the private sector are expecting the Philippine gross domestic product (GDP) to grow by 6.5 percent to 7.5 percent this year and next, owing to aggressive infrastructure spending, domestic consumption, OFW remittances and BPO revenue.
Investors are also starting discount the impact higher interest rates in the US on the Philippines, Limlingan noted.
The Industrial index declined while the rest of the sectoral indices scored gains, led by the Property index’s 1.22 percent.
Among the actively traded stocks, Ayala Land Inc., BDO Unibank Inc. and SM Investments Corp. registered gains, while Metrobank, Puregold Price Club Inc., and Metro Pacific Investments Corp. posted declines and Universal Robina Corp. was unchanged.
More than 1.69 billion shares were traded, valued at P7.6 billion. Gainers outpaced losers, 107 versus 75, while 46 shares were unchanged.
On Friday, the PSEi added 12.18 points or 0.17 percent to 7,247.12, while the All Shares gained 6.99 points or 0.16 percent to 4,385.86.