By Leslie D. Venzon
MANILA, (PNA) –- The Philippines’ strengthening fiscal position and tepid increase in China’s manufacturing activity pushed local share prices slightly higher on Tuesday after five days of decline.
This, even as United States President Barack Obama instructed federal agencies to begin a partial shutdown as the stalemate passed the deadline to pass an appropriation law.
The barometer Philippine stock exchange index (PSEi) gained 6.04 points or 0.10 percent to 6,197.84 from previous day’s 6,191.80 close.
”Even as nations in Europe and the US, and even India and Indonesia, struggle to balance their fiscal house, ours are meeting this crisis from a position of strength. We have no problem with our debt levels, we experience no budget stand-off and our deficits have been kept way below programmed levels,” said Jun Calaycay, an analyst at Accord Capital Equities Corp.
Calaycay said the Philippine economy is also growing above-target, benefiting corporate earnings.
The country’s gross domestic product (GDP) expanded 7.8 percent and 7.5 percent in the first and second quarters this year, respectively.
”The Philippine economy is a special situation relative to its neighbors –a distinction that should put us up front on the list of considerations for funds seeking higher returns, or at the very least, less risk,” he noted.
Data showing that China’s manufacturing activity grew slightly in August also slightly boosted sentiment of investors.
Despite the market’s ascent, four sectors declined, led by mining and oil that lost 1.02 percent.
Only the sub-indices of services and property were in the positive territory.
Volume of transactions reached 1.53 billion shares valued at P7.88 billion.
Market breadth was negative with decliners outpacing gainers, 84 to 57, while 41 issues were unchanged.
Top gainers were Ginebra San Miguel Inc., Maybank ATR Kim Eng Financial Corp., PAL Holdings Inc., Filipino Fund Inc. and Arthaland Corp.