The stock market rose Monday on expectations the economy may have expanded by over 6.7 percent in 2017, after the government revised the third-quarter GDP growth rate to 7 percent from an initial estimate of 6.9 percent.
The Philippine Stock Exchange Index added 34.70 points, or 0.4 percent, to 8,950.62 on a value turnover of P8.1 billion. Losers, however, beat gainers, 128 to 99, with 52 issues unchanged. The government is scheduled to release the fourth-quarter gross domestic product figures today.
LT Group Inc. of airline and tobacco tycoon Lucio Tan climbed 6.5 percent to P24.50, while unit MacroAsia Corp., which provides aviation-related services, rallied 9.6 percent to P23.95.
Casino operator Bloomberry Resorts Corp. advanced 4.3 percent to P11.18, while San Miguel Pure Foods Company Inc. climbed 6.4 percent to P596.
The rest of Asian equities reversed early losses Monday to build on last week’s rallies, while the the euro was boosted by hopes Chancellor Angela Merkel will be able to form a new German government.
While a shutdown of the US government looks unlikely to be resolved immediately, analysts said investors remained upbeat due to the strong global economic outlook and healthy corporate earnings.
The morning saw a more cautious tone after Hong Kong hit new all-time highs and Tokyo’s Nikkei cracked 24,000 for the first time in 26 years.
However, with the earnings season about to go into full swing and data showing economies across the globe continuing to improve, prices rebounded in most parts of the region in the afternoon.
Hong Kong rose 0.4 percent to a new record and Shanghai added 0.4 percent by the end of trade, while Tokyo was slightly higher on late bargain-buying.
Singapore gained 0.2 percent, while Wellington and Taipei tacked on healthy gains.
However, Sydney eased 0.2 percent and Seoul lost 0.7 percent.
There is little concern over the midnight Friday shutdown of the US government, which came after lawmakers failed to agree a funding bill with Democrats in the Senate holding out for Republican concessions on immigration issues.
The two sides remain locked in talks to resolve the issue but expectations are for the shutdown to continue for some time, with a planned vote on Sunday evening delayed until noon Monday.
Still, analysts were not too concerned for the time being.
“Due to the limited economic impact, markets should be largely unaffected,” Poul Kristensen, portfolio manager at New York Life Investment Management, told Bloomberg News.
“If there is a little pullback, we believe it will be a buying opportunity. The last time the government shut down in 2013, markets moved higher.”
On currency markets the dollar continues to struggle, with the euro supported by news that Germany’s centre-left Social Democrats had voted to hold coalition talks with Merkel’s conservatives.
A deal would end months of uncertainty in Europe’s biggest economy. With AFP