Philippine shares rallied on Wednesday to mark the year’s highest close, in line with the climb in Asian markets, but with positive domestic economic indicators giving the market a bigger boost, analysts said.
Regina Capital Corp. Business Development Managing Director Luis Limlingan cited the government’s optimism about the Philippine economy this year, expecting 7 percent GDP growth for the first quarter.
The benchmark Philippine Stock Exchange index finished 1.85 percent or 137.72 points higher at 7,584.21, its highest in 2017. The broader All Shares gained 1.15 percent or 51.21 points to end at 4,511.77.
All sectors closed in positive territory, with Property leading advancers with a 2.83 percent gain.
Banco de Oro Market Strategist Jonathan Ravelas sees a new shift in portfolio funds back to the emerging markets.
“That’s eventually pushing the regional counter zone. It seems that probably this week is the turn of the Philippines, and of course, we even broke new ground of more than three-and-a-half-month consolidation so we had this recent runs with positive news,” he said in a phone interview.
Positive reports include: Fitch Ratings affirming its positive outlook on the Philippines’ investment credit ratings; Socioeconomic Planning Secretary Ernesto Pernia keeping a positive first quarter Gross Domestic Product (GDP); manageable inflation at 3.4 percent in March; and good corporate earnings in 2016.
Ravelas has a positive outlook on the local stock market until the end of April as the country awaits the release of first-quarter gross domestic product data soon.
He sees market resistance at 7,700 points.
Among the most actively stocks were Ayala Land, Inc., Universal Robina Corp., SM Investments Corp., PLDT Inc., Metropolitan Bank & Trust Company, Security Bank Corp., BDO Unibank Inc.,GT Capital Holdings Inc., and SM Prime Holdings Inc.