25 October 2011
USD/PhP: 43.137 - 0.130 PSEi: 4242.52 + 41.44
USD/JPY: 76.12 PFINC: 941.46 + 9.47
EUR/USD: 1.3933 BDO: 53.35 + 0.50
GBP/USD: 1.6008 BPI: 57.10 + 1.10
PDSTF3M: 1.6169 MBT: 68.00 + 0.60
Prices as of 4:00pm Source: Bloomberg, Reuters
Philippine stocks rise on optimism over Europe debt plan
(philstar.com) Updated October 25, 2011
MANILA (Xinhua) -- The Philippine stock market continued to rally for the
second time on Tuesday as investors remain positive that Europe is close to
finding a solution to its debt crisis.
The bellwether Philippine Stock Exchange index gained 0.98 percent or 41.44
points to 4,242.52. The broader all-share index was up by 0.51 percent or
15.31 points to 2,965.49.
Trading volume reached 4.8 billion shares worth 18.73 billion pesos (434.06
million U.S. dollars) with 93 stocks advancing, 54 declining, and 29
unchanged.
All six counters closed higher, led by the mining and oil sector which
rallied by 1.3 percent.
"All major equities markets were significantly higher (and) that may be
signaling that investors have calmed down with regards to worries of an
endemic financial meltdown in the Euro region," brokerage DBP-Daiwa
Securities, Inc. said.
Investors all over the world seem to be riding the positive mood stemming
out of a possible resolution of the Eurozone debt crisis.
Dow Jones industrial average index was up by 0.89 percent or 104 points.
Asian stocks were mostly trading in the green Tuesday.
Analyst Justino Calaycay of Accord Capital Equities Corp. said the way the
Philippine stock market has moved throughout Tuesday reflects investors'
confidence that Europe's leader will announce good news when they meet on
Wednesday afternoon.
"We do not expect a perfect solution that everyone will agree to, but by
and large, we are confident that what will come out will be reasonable and
acceptable enough to ease recession concerns," Calaycay said.
The analysts said another factor boosting the local stock market is the
upcoming release of third quarter corporate earnings.
"Bargain hunting could be another theme in the local market as investors
position ahead of the release of corporate earnings starting next week,"
DBP-Daiwa Securities, Inc. said.
Calaycay however added that while the Philippine shares will get an added
push from the corporate earnings, everything still hinges on Europe.
The analyst said a positive result from the region will draw investors to
bet on earnings more aggressively, while the opposite will push the markets
to opt for cash.
Stocks in the 30-company index closed higher. Among the most actively
traded issues were heavyweight Philippine Long Distance Telephone Co.,
Banco de Oro Unibank, Inc., and Ayala Land, Inc.
Philippines Posts Budget Deficit as Revenue Growth Slows
By Karl Lester M. Yap and Max Estayo
Oct. 25 (Bloomberg) -- The Philippines posted a budget deficit in
September after a surplus in the previous month, as slowing revenue growth
offset a decline in government spending.
The shortfall was 18.5 billion pesos ($428 million), compared with a
9.2 billion-peso surplus reported earlier for August, according to an
e-mailed government statement in Manila today. The nine-month gap was 52.99
billion pesos against a targeted 234.35 billion pesos, and compares with
259.79 billion pesos a year earlier.
President Benigno Aquino unveiled a 72 billion-peso stimulus package
this month as a faltering global recovery prompted the Philippine
government to cut growth forecasts for this year and next. Asian nations
have shifted their focus to protecting their economies as a potential Greek
default and unemployment above 9 percent in the U.S. threaten to push the
world into another recession.
“The government must speed up spending at a time when global
uncertainties threaten to hurt domestic growth,” Jonathan Ravelas, chief
market strategist at Banco de Oro Unibank Inc., the Philippines’ largest
lender, said before the report.
The peso rose for a second day to 43.15 per dollar today, according to
Tullett Prebon Plc. The yield on benchmark five-year bonds due September
2016 fell 3 basis points to 4.8 percent, according to Tradition Financial
Services.
The government narrowed its forecast for the budget deficit on Oct.
12, predicting the shortfall this year may be 2.6 percent of gross domestic
product, or about 260.6 billion pesos, from a previous estimate of 3
percent or about 300 billion pesos.
From a year earlier, revenue in September climbed 13.5 percent, while
spending slid 0.6 percent.
BDO UNIBANK, INC.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Anton Lina
Junior Researcher
(632) 858-3001
