Soaring stock market earns thumbs-up for PH

Kim Arveen Patria
Kim Arveen Patria
Yahoo! Southeast Asia Newsroom
This file photo shows Manila's financial district, pictured in June. The Philippines says its economy expanded a better-than-expected 7.1 percent year on year in the three-months to September on the back of a robust services sector

The economy notched another vote of confidence as the Philippines landed in an international news website's list of 40 best-performing stock markets this year.

CNN Money ranked the Philippines as the 9th bourse with the strongest performance so far in 2012, noting a 26-percent gain as of Nov. 14.

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The list, which is also tagged as the "best investments in the world," includes stock markets which posted "healthy gains" despite "a volatile year and a slowing global economy," CNN Money said.

The recent thumbs-up for the Philippine economy comes as local stocks soared to new all-time highs 32 times so far this year.

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The latest record was hit Thursday when the PSEi rose by 0.12 percent or 6.73 points, closing at 5,640.45.

"A number of stock markets around the world have delivered solid performances this year, but if you look at the standouts, there's a common thread: they're all small emerging markets," CNN Money said.

The best-performing markets are those are insulated from external events and have enjoyed stable local and political environments, it added, quoting a fund analyst.

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Venezuela sat on top of the list of 40 markets, having posted a year-to-date gain of 219 percent so far this year.

It was followed by Egypt (55 percent), Turkey (43 percent), Pakistan (33 percent) and Nigeria (31 percent).

At the bottom of the list, meanwhile, are Taiwan and the United States,which both posted 6-percent gains; and Czech Republic, Iceland, Luxembourg at 4 percent.

"While most of the top-performing markets are still small when it comes to liquidity and volume, they're starting to gain positive attention from investors, fund managers and rating agencies," CNN Money said further.

In the case of the Philippines, the three major credit rating agencies--Standard & Poor's, Moody's and Fitch--now placed it only a notch below investment grade.