PNoy buoyed by local stocks' all-time high

After Philippine stocks soared to an all-time high on Thursday, President Benigno Simeon "Noynoy" Aquino III said he is confident that the country's economy will recover from the impact of the August 23 hostage crisis on tourism. In an ambush interview on Friday, Aquino said he was elated that the Philippine Stock Exchange index (PSEi) gained 97.98 points or 2.56 percent to close at 3,902.56 Thursday. Aquino said this has been the highest PSEi since 1987, during the term of his late mother, President Corazon Aquino. Aquino noted that several flights to the Philippines were canceled when the Hong Kong government issued a travel ban after the August 23 hostage tragedy where eight Hong Kong tourists were killed. On that day, a dismissed senior police inspector, Rolando Mendoza, hijacked a bus carrying 21 Hong Kong tourists and four Filipinos. Mendoza was demanding for his reinstatement and the dismissal of a pending case against him in the Office of the Ombudsman. After an 11-hour standoff, Mendoza and eight Hong Kong tourists died. More than 550 tourists from Hong Kong and mainland China canceled their reservations with Philippine Airlines (PAL) days a few days after the hostage incident. "There have been cancellations that I think we are all aware of but I think the prognosis is given enough time we'll be able to recover, rebound from that," said the president. Noting the new PSEi record, Aquino said investors expect that "things are going to get better" in the Philippines. "Perhaps that is a measure of the trust and confidence they're imposing on the current administration and the directions primarily of the economic team," he said. The Philippine economy grew by 7.9 percent in the second quarter, the last three months of the administration of former President Gloria Macapagal Arroyo. This growth was credited to the relatively peaceful May elections and improved investor confidence, among others. As the 3rd quarter growth assessment approaches, Aquino said the government will do everything to sustain the economic developments. –VVP, GMANews.TV