Stocks rose for a second day, after an agency of the United Nations raised its 2016 growth forecast for the Philippines to 7 percent from the previous estimate of 6 percent.
The Philippine Stock Exchange index, the 30-company benchmark, gained 21 points or 0.3 percent, to close at 6,886.74 Friday. The bellwether was still down 0.9 percent since the start of the year.
The heavier index, representing all shares, rose 7 points, or 0.2 percent, to settle at 4,166.49, on a value turnover of P6.8 billion. Advancers edged losers, 90 to 89, while 45 issues were unchanged.
Ten of the 20 most active stocks ended in the green, led by cement manufacturer Cemex Holdings Philippines Inc. which climbed 3.5 percent to P11.28 and conglomerate SM Investments Corp. which rose 3.2 percent to P650.
The United Nations Economic and Social Commission for Asia and the Pacific, the Bangkok-based regional development arm of the United Nations, said it expected the Philippine economy to grow 7 percent this year and 6.2 percent next year.
The gross domestic product expanded 7.1 percent in the third quarter, bringing the average growth to 7 percent in the first three quarters.
Meanwhile, Asian stocks turned negative Friday and oil prices retreated along with the dollar as investors took a step back from a recent rally, while caution set in ahead of a crunch referendum in Italy at the weekend.
World markets have been rising since Donald Trump’s shock US election win on hopes his big-spending, tax-cutting policies will boost the world’s largest economy.
The advance was given extra impetus Wednesday when Opec agreed on a plan to cut oil production, sending prices soaring.
But James Woods, global investment analyst at Rivkin Securities in Sydney, told Bloomberg News: “Markets have rallied pretty strongly and we had three fantastic weeks but buying pressure certainly looks exhausted. We will see some corrective declines and profit taking.”
Japan’s Nikkei, which on Thursday closed at its highest level this year, slipped 0.5 percent, while Hong Kong gave up 1.2 percent and Shanghai slipped 0.9 percent.
Sydney fell one percent and Seoul shed 0.7 percent, while Singapore gave back 0.3 percent. Wellington, Taipei and Manila were also down.
Japanese exporters retreated on the back of a strengthening yen. In afternoon trade the dollar bought 114.00 yen, having flirted with 115 yen earlier this week, which was a nine-month high.
On oil markets both main contracts dipped marginally after racking up double-digit gains in the previous two days in reaction to OPEC’s output-cutting deal.
Traders are now awaiting key events at the weekend. On Friday the US releases its November jobs report, which could give an indication of the Federal Reserve’s plans for interest rates over the next year.
And on Sunday Italy goes to the polls for a constitutional referendum, with Prime Minister Matteo Renzi saying he will resign if his government loses, leading to a possible general election.
While experts say the chances of a Eurosceptic party gaining power is low, there are worries about the uncertainty it could create in one of the EU’s biggest economies.
Also Sunday Austrians will vote for a new president, with Norbert Hofer seeking to become Europe’s first far-right president since 1945. With AFP, Bloomberg