SHARES climbed on Wednesday after the International Monetary Fund (IMF) raised its growth forecast for the country for this year.

The benchmark Philippine Stock Exchange index (PSEi) advanced by 104.68 points or 1.48% to close at 7,142.42 on Wednesday, while the broader all shares went up by 34.21 points or 0.91% to 3,777.13.

“The local bourse rallied this Wednesday amid optimism towards the local economy. This comes following the IMF’s upward revision of the Philippines’ 2022 economic growth forecast from 6.3% to 6.5%. The country’s sustained BBB+ credit rating with a stable outlook from Rating and Investment Information, Inc. (R&I) also gave sentiment a boost,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The market finished higher as investors took positively to the reports that the IMF raised the country’s growth [outlook] for the year 2022,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.

The IMF on Tuesday said it expects the Philippine economy to expand faster this year albeit below the government’s target amid the ongoing Russia-Ukraine crisis.

In its latest World Economic Outlook report, the IMF raised its 2022 growth projection for the Philippines to 6.5% from 6.3% previously, lower than the government’s 7-9% target for this year.

Last year, the Philippine economy grew by 5.7%, a turnaround from the record 9.6% contraction in 2020.

Meanwhile, R&I maintained the Philippines’ credit rating at BBB+ with a stable outlook as the economy continues to recover from the pandemic. The debt watcher last affirmed the Philippine sovereign rating in April 2021.

Majority of sectoral indices ended in the green except for mining and oil, which fell by 57.33 points or 0.45% to 12,489.67.

On the other hand, property climbed by 93.15 points or 2.87% to 3,333.31; financials went up by 20.69 points or 1.24% to 1,679.48; holding firms gained 73.41 points or 1.11% to 6,651.78; services improved by 17.23 points or 0.87% to 1,990.51; and industrials rose by 29.93 points or 0.30% to 9,718.16.

The MidCap index declined by 6.72 points or 0.57% to 1,178.02, while the Dividend Yield index added 9.91 points or 0.59% to close at 1,694.91.

Value turnover decreased to P4.82 billion with 799.64 million shares changing hands from the P5.20 billion with 988.95 million issues seen on Tuesday.

Advancers beat decliners, 98 versus 78, while 54 names were unchanged.

Foreigners turned buyers with P585.78 million in net purchases versus the P350.41 million in net selling seen the previous trading day.

For the remainder of the week, Timson Securities’ Mr. Pangan placed the PSEi’s support at 6,800 and resistance at 7,510. — Luisa Maria Jacinta C. Jocson