Philippine shares firmer on rosy ADB outlook; caution ahead of FOMC caps gains

Philippine shares firmer on rosy ADB outlook; caution ahead of FOMC caps gains

	Published : Mon, 17 Sep 2007 04:47 By : Agencies Print this Story

MANILA (Thomson Financial) - Philippine shares were firmer halfway through Monday's session with the Asian Development Bank's upbeat outlook for the domestic economy providing some support to a market anxiously awaiting the Federal Reserve's interest rate decision tomorrow.

During trading hours, the ADB released its updated 2007 Asian Development Outlook report, which painted bright prospects for the region's developing economies despite recent turbulence in financial markets.

At 11.10 am (0310 GMT), Manila's composite index was up 11.40 points, or 0.4 percent, at 3,305.95.

The broader all-share index was up 0.3 point at 2,086.76.

'Investors are in a wait-and-see mode ahead of the Fed meeting. But although there's lingering concern about the health of the US economy, the rosy outlook for the domestic economy remains intact,' said Ron Rodrigo, reseach head at Unicapital Securities.

The Manila-based lender has upgraded its growth forecasts for the Southeast Asian nation's gross domestic product to 6.6 percent from 5.4 percent for 2007, and to 6.0 percent from 5.7 percent in 2008.

The ADB said the Philippine economy looks set to maintain its growth momentum given robust domestic consumption and government spending, higher exports and brisk cash remittances of Filipinos working abroad.

The ADB's report followed Standard & Poor's announcement last Friday that it has affirmed its 'BB-/B' foreign currency and 'BB+/B' local currency issuer credit ratings for the Philippines.

S&P is keeping its stable outlook which, it said, reflects its assessment that local and foreign currency funding and rollover risks remain manageable after the global financial market turbulence and consequent tightening liquidity.

However, Rodrigo said investors prefer not to make any decisive moves ahead of the Fed's decision on interest rates.

Index leader Philippine Long Distance Telephone Co rose 10 pesos, or 0.4 percent, to 2,700 pesos.

Shares in Ayala Land Inc, the nation's biggest property developer, advanced 25 centavos, or 1.8 percent, to 14.25 pesos.

Shares in conglomerate Ayala Corp gained 5 pesos, or 1.0 percent, at 492.50 pesos.

(1 US dollar = 46.18 pesos)

enrico.delacruz@thomson.com

ed/jg

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.