The Philippine index surged 2.1%, the second consecutive day of gains.
While President Rodrigo Duterte’s office has yet to receive the budget bill approved by Congress on Wednesday, his spokesman said Duterte would scrutinize the spending plan and do his best to approve the 4.5 trillion pesos ($93.61 billion) budget on time.
The Philippines has been hard hit by the coronavirus, and the government is now forecasting a deeper 8.5%-9.5% contraction this year.
The central bank of the Philippines is largely expected to hold fire at its monetary policy meeting this week, analysts said, adding they could not rule out a rate cut in 2021.
“The optimism about the national budget being almost passed” is likely driving the share price gains, said Jennifer Lomboy, fixed income fund manager at First Metro Asset.
“The possibility of yet another rate cut early next year also drives the market as investors turn to equities in search of better yields,” said Lomboy in Manila.
