PSE index up 1% on investor confidence, upside momentum

Philippine share prices on Thursday rose through bullish and bearish surprises in the country, fueled by the maket's upward momentum. "The momentum is on the upside after the government said the country posted a 7.9-percent economic growth," said Emmanuel Soller, a trader of Equitiworld Securities Inc, adding that the index will continue to rise "even though the country's tourism industry has been discredited by people everywhere." The Philippine Stock Exchange index closed 41.23 points or 1.16 percent to 3,595.41 points. The index was supported by an upswing in all sub-indices. Almost 1.07 billion shares valued at more than P3.125 billion were traded. There were 100 advancers and 40 decliners, and 28 stocks were unchanged. Soller said the 7.9-percent growth in the gross domestic product during the second quarter shows that investors' confidence remains robust. "With a strong economy, investors can keep pace with continually changing market conditions," he said. The economic growth, he added, seemed to "counterbalance the drag of the US stocks and some terrifying incidents that occurred lately." Soller was referring to the backlash of the hostage crisis Monday that ended in the bloody siege of a tourist bus, with 21 tourists from Hong Kong, hijacked by a former police officer. Eight tourists and the hostage-taker died in the assault by members of the Manila police Special Weapons and Tactics team. "Negative sentiments over the country caused by the crimes will not have a lasting effect on the economy," Soller said, adding that if situation turns worse, "if the government does not exercise proper authority and control, investors and other nations may perceive this negatively." —JE, GMANews.TV