By Leslie Venzon
MANILA, (PNA) –- Local share prices rose sharply for a second session Wednesday on the back of bargain-hunting and robust 2014 economic growth forecast for the Philippines.
Philippine stocks ignored a United States government shutdown, with the main index surging 164.42 points or 2.65 percent to 6,362.26 from previous day’s 6,197.84 close.
The Manila-based Asian Development Bank (ADB) sees the Southeast to expand at a slower pace next year, but singles out “stronger Philippine growth” to partially offset the decline.
The Philippines gross domestic product (GDP) expanded 7.8 percent and 7.5 percent in the first and second quarters this year, making the country still the fastest-growing economy in Southeast Asia.
Brokerage firm Accord Capital Equities Corp. said that while the local bourse is not entirely “unaffected” by the turmoil that visits the US economy, the negative sentiments leading up to the shutdowns appear to be overdone.
The US government began to shut down for the first time in 17 years after its Congress failed to agree on a new appropriation law.
”We need not enumerate the strengths of the domestic economy. ADB’s outlook should suffice,” it said.
2tradeasia.com said expectations for possible stop-gap to address the US budget deficit issue kept players on the watch for bargains.
Accord Capital said the recent scare over a US government shutdown “created, opened and presented unmistakable buying opportunities.”
All counters were in the positive territory, led mainly by holding firms and financials stocks that advanced 3.09 percent and 2.51 percent.
Volume of transactions reached 1.30 billion shares valued at P8.23 billion.
Advancers won decliners, 99 to 46, while 40 issues were unchanged.
The day’s biggest index gainers were Maybank ATR Kim Eng Financial Corp., A Brown Company Inc., 2Go Group Inc., i-Remit Inc. and Philippine Seven Corp.