RP shares close slightly up on positive economic outlook

Shares on the Philippine Stock Exchange posted slight gains in moderate trading Monday, helped by optimism about the economy despite mounting concerns about the pace of the global recovery. The main PSE index went up by 20.76 points or 0.6 percent to close at to 3,311.74. Almost 970 million shares worth P1.97 billion changed hands in Monday’s session. Advancers led decliners 55 to 48, with 59 issues unchanged. "The faltering global recovery is just an external worry," said Jonathan Ravelas, chief market strategist of Banco de Oro Unibank Inc. He was referring to Greece's debt crisis as a reflection of the larger economic problems of Europe. "Despite the local optimism, the possibility of a sell off seems to be stemming from external factors," AB Capital Securities Inc. said in a report, however. These concerns eclipse the start of the new government, Ravelas said. "It's still a wait-and-see period for investors [regarding] President Benigno Aquino III's character, oratorship, right policies, and economic activities," he said. "Investors are still waiting how the character of President Aquino and his cabinet would unfold. They're also looking at how he communicates with the public," he added. "Although the pacing is slow, we can find confidence that we are set to perform better this year. Along with this new leadership are also new investments," AB Capital said. —VS, GMANews.TV