"DIB Solutions" Confident Of Philippine Stock Gains.

Online, September 11, 2009 (Newswire.com) - Gross domestic product increased 1.5 percent from a year earlier, the National Statistical Coordination Board said in Manila today. That was three times the 0.5 percent median forecast of 17 economists surveyed by Bloomberg News. The economy expanded a revised 0.6 percent in the first quarter, the weakest pace since a recession ended in 1998.

A source at DIB Solutions revealed this week that portfolio managers were upping their exposure in Philippine markets after the firms regional analyst team concluded recently that many strong prospects in the leading index are well positioned for growth in what is an increasingly robust recovery for Asian nations.

Record-low borrowing costs and government stimulus are helping Asian nations from Thailand to Singapore report better second-quarter economic numbers. Philippine President Gloria Arroyo has boosted spending to avoid a recession. In the eyes of the DIB Solutions analyst team, this has been successfully executed.

The DIB Solutions source said that the governments stimulus programs have been successful in preventing a slowdown. He added that they should continue to pump prime to create the necessary conditions for sustainable economic growth. According to the source, the findings of the DIB Solutions analysts were that the government's economic resiliency plan resuscitated the domestic economy during the second quarter and that the nation has effectively escaped recession and is on track to achieve a 1.8 percent growth rate this year.

The government predicts expansion in the $167 billion economy will improve in the second half of the year as the global slowdown eases and state spending kicks in. The central bank kept its benchmark interest rate unchanged at a record low of 4 percent last week after slashing borrowing costs by 2 percentage points from mid-December to July.

DIB Solutions portfolio managers are now primed to act on the findings, which suggest that the Philippine economy may exceed 3.6 per cent growth next year due to the quicker than expected conclusion to the global recession. Consumer spending is also on the up, and since it represents about 70 per cent of the economy, DIB Solutions analysts are said to be in the process of identifying an arsenal of retail stocks primed for maximum growth.

DIB Solutions are expected to release the findings of the analysis, along with a recommended list of top picks, to clients and shareholders during next week.