PHILIPPINE shares advanced on Tuesday, backed by continued optimism about the Philippine economy and the primary election results in France.
“All economic factors for a growing economy and optimism about the country, in terms of confidence, are in place. The stock market is a barometer, and the technical is showing good signals,” Summit Securities Inc. President Harry Liu told The Manila Times.
The benchmark PSEi soared 1.47 percent or 111.58 points to close at 7,700.46. The broader All Shares jumped 1.19 percent or 54.07 points to finish at 4,596.88.
All sectors were in the green led by Holding firms (+2.004), Services (+1.55), Property (+1.18), Industrial (+1.11), Financials (+0.94) and Mining and Oil (+0.81).
Juanis Barredo, COL Financial sales vice president, noted the rally was due to “the primary election results in France which also lifted the US and European markets significantly. This in turn buoyed our market after showing some defensiveness in the last few days.”
The Dow Jones Industrial Average (DJIA) jumped 216.13 points, or 1.05 percent, to 20,763.89 on Monday (Tuesday in Manila) as investors took a closer look at what’s happening between French presidential candidates Macron and Le Pen.
Regina Capital Corp. Managing Director Luis Limlingan said the Philippine market followed the sentiment of US stocks.
“Major indices advanced more than 1 percent and the tech-heavy Nasdaq scored a record high close, following a strong showing by centrist Emmanuel Macron in the French presidential election, which averted fears of a euro-skeptic-only runoff,” Limlingan said.
Over the weekend, the International Monetary Fund (IMF) affirmed its positive outlook on the Philippine economy, saying it is capable of growing by around 7 percent over the next two years on the back of robust domestic demand and strong exports recovery.
Investment bank First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) noted in a separate report on Tuesday the country’s gross domestic product is capable of growing by 6.5 percent to 7 percent in the first quarter, buoyed by exports and robust domestic demand.