Another positive US inflation report and an assurance from credit watchdog unit Fitch Solutions that Philippine growth is still intact inspired the market rally to continue and close the weekend at 18.98 points higher.
The Philippine Stock Exchange index ended at 6,699.66 on turnover of P6.71 billion.
Despite the slower 7.4 percent growth in the second quarter, Fitch Solutions Country Risk & Industry Research raised its growth forecast to 6.6 percent by year’s end.
The think tank believes the growth target of 6.5 percent to 7.5 percent is attainable.
Fitch’s forecast reflects expectations that the rest of the year’s expansion will be moderate relative to the first half, Regina Capital Development Corp. managing director Luis Limlingan said.
The deceleration in growth was in line with Fitch’s view, but the magnitude was less than expected. Fitch expects weakening global demand, elevated energy prices, and tightening monetary conditions to continue to weigh on the economy.