Friday, November 23, 2012

Business Sentiment Improves for PH

The local equities market gained today, led by banks such as BPI (+2.06%) and MBT (+2.42%) as the sector recovered from the previous day’s profit-taking.

Significant gains were tempered by PX, which declined 1.34% after it was required by the government to pay its Php1.034 billion penalty—in relation to the tailings spill of Padcal mine— within 45 days.

The main-share index gained 38.97 points, or +0.71%, to end the week at 5,552.34. Financials (+1.31%), holding firms (+0.84%), industrials (+0.58%), property (+0.50%) all ended positively, with only mining and oil (-0.48%) and services (-0.02%) closing in the red.

Market breadth was positive with advances outnumbering declines 88 to 72 with 51 issues unchanged while value turnover was at Php5.75 million.

Business sentiment in the country improved for the fourth quarter, given the possibility of a near-term investment grade status, a favorable economic growth performance and expectations that household spending would remain strong.

Data released showed that the business confidence index had improved to 49.5%, higher than the 38.7% posted in the same period last year. It is also higher than the 42.5% posted for the third quarter and is the second highest figure on record.

Bangko Sentral ng Pilipinas Assistant Governor Ma. Cyd Tuano-Amador said that the reasons for an improving business sentiment included seasonal factors, favorable macroeconomic conditions, expectation of a positive credit-rating action, and confidence in the government.