The local stock barometer inched up for the second session in a row Friday as regional markets became a bit more hopeful over debt-strapped Greece alongside the measures taken by China to support its bludgeoned stock market.
The main-share Philippine Stock Exchange index (PSEi) gained 14.9 points or 0.2 percent to close at 7,392.59, wiping losses earlier in the session.
Elsewhere in the region, stock markets were mostly higher as investors were encouraged by the recent recovery in Chinese markets while expectations of a deal for Greece increased ahead of a European leaders’ summit this weekend.
At the local market, gains were capped by reports that Philippine export earnings declined by a steep 17.4 percent year-on-year in May, with electronics exports falling by 7.5 percent.
“The decline in exports was sharp, reflecting deteriorating demand from markets such as China and the EU. That said, we do not forecast weak goods exports to have a very large bearing on growth as the Philippines has other growing income sources such as services exports and remittances. Still, the question is whether policymakers can do anything to offset lackluster external demand. We believe there is fiscal space to speed up spending,” said HSBC economist Trinh Nguyen. Doris Dumlao-Abadilla