PSE index surges 2.01% on investor confidence

The Philippine Stock Exchange index went up by 2.01 percent Friday as investors saw upbeat prospects for the Aquino administration's bolstered plan to build more roads and infrastructure in the country. "The government's public-private partnership (PPP) scheme boosted investor confidence, putting the market on its uptrend," said Astro del Castillo, managing director of First Grade Finance Inc. The PSE index gained 82.98 points or 2.01 percent to finish at 4,203.60, a 3-percent increase week-on-week. More than 1.438 billion shares valued at P6.695 billion changed hands. Advancers outpaced decliners 98 to 32, while 40 issues remained unchanged. The government is encouraging diversified conglomerates — like San Miguel Corp. and Metro Pacific Investments Corp. — to bankroll priority projects of the government. Both firms have recently ventured into the capital-intensive toll way business. Some P740 billion worth of infrastructure projects have been lined up under the PPP program. Del Castillo said the US markets' gains also influenced the PSEi. The Dow Jones Industrial Average rose 1.6 percent to close at 11,181.23, its first increase in three days. The broader Standard and Poor's 500 index rose 1.5 percent to 1,196.69. The jump on Wall Street was due to a strong manufacturing report and rosier outlook for Europe's debt problems, an AP report cited. -- OMG, GMANews.TV