051607: Stock market in 10-year best after polls

By Louise M. Francisco

Researcher

AFTER experiencing relatively peaceful midterm elections, dealers cheered Tuesday as the Philippine Stock Exchange (PSE) index closed at its highest in a decade and breaching the 3,400-point mark at 3,408.73. It is the index’s best finish after it closed to 3,398.89 on February 4, 1997. It recorded a 14.3-percent increase from last year’s 2,982.54-point mark level. Stocks rose on the belief that President Arroyo would be able to control the House of Representatives while driving for economic reforms. See RP Stocks, B2. PSE president and chief executive officer Francis Lim expressed happiness with the output of the market’s main barometer and even lauded the performance of listed companies. “Corporate earnings last year also improved; and, for the first quarter of this year as well. On top of these, regional markets are doing well, which of course have a favorable impact on our market.” Lim added that the convergence of favorable developments from both the political and economic front will definitely benefit the stock market. The Philippine peso remained stronger in weakening the US dollar to close at P47.06, boosted by the remittances from Filipinos working overseas. This development is helping boost confidence in the local economy. The volume of dollars went up by 24 percent year-on-year to $3.5 billion for the first quarter. In March alone, the inflows hit $1.3 billion and approximated the level of the previous December, when millions of OFWs remitted more than the usual amount for the Christmas holidays. “Remittances of overseas Filipino workers coursed through banks remained above $1 billion for the 11th straight month since May 2006,” said Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. on Tuesday.

 

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