Philippine Shares Rise to To Highest in Nearly 10 Years on Rosy Economic Outlook

Philippine shares advanced Wednesday to their highest level in nearly 10 years amid optimism about the nation's economic outlook.

The benchmark Philippine Stock Exchange Index gained 43.85 points, or 1.5 percent, at 3,020.70, its best since April 4, 1997. The index lost 0.2 percent Tuesday.

"The macroeconomics picture is very positive. It's a perfect scenario that is conducive for the bull market to be sustained," said AB Capital Securities research director Jose Vistan.

He said the index was likely to test the 3,400-point resistance level this year, although congressional and local elections in May and a possible global economic slowdown may create a market overhang.

Active stocks included Philippine Long Distance Telephone Co., up 1.2 percent at 2,580 pesos, and Bank of the Philippine Islands, higher by 3.2 percent at 65.50 pesos.

Geothermal producer PNOC-Energy Development shed 1 percent at 4.75 pesos on profit-taking, after surging 9 percent last week.

Gainers led decliners 76 to 35, while 49 stocks were unchanged.

The peso rose against the U.S. dollar Wednesday to a fresh six-year high with heavy volume and brisk inflows from equity investors. The dollar closed at 48.880 pesos, down from 48.915 Tuesday.