THE Philippine stock index climbed on speculation the worst may be over for US credit losses sparked by a housing slump and after the Asian Development Bank (ADB) said Asia may grow faster than earlier forecast.

Bank of the Philippine Islands led gains among the nation’s biggest companies on expectations an improving outlook in the US, the largest overseas market for Philippine products and labor, will boost growth in the Southeast Asian economy.

“The market is getting a lift from the seemingly improving sentiment in the US,’’ said Astro del Castillo, managing director of First Grade Holding Inc., a financial management and advisory company. “The outlook for faster economic growth in Asia is also softening the worries over the impact of a US slowdown.’’

Manila Water Co. advanced the most in two weeks after the utility said its regulators have started evaluating the company’s application to increase its rates by about 66 percent. Aboitiz Equity Ventures Inc. had its biggest climb in almost three months after its energy unit said it will bid for three- power plants and build four others.

The Philippine Stock Exchange index gained 46.26, or 1.3 percent, to close at 3,645.22, after sliding 2.2 percent in the previous two days. The value of shares that changed hands was the lowest in more than a month.

US stocks posted on November 16 their first weekly gain this month after Goldman Sachs Group Inc., the biggest US securities firm by market value, said it’s not planning a significant writedown while Wal-Mart stores boosted its earnings forecast.

Bank of the Philippine Island, the nation’s largest lender by market value, climbed P2.50, or 4 percent, to P64.50. Philippine Long Distance Telephone Co., the largest company by market value, added P65, or 2.2 percent, to P3,080, its biggest gain in a month.

US banks have reported about $45 billion in losses related to a housing recession in the world’s biggest economy. Concern that the writedowns and the housing slump will trigger a credit crunch and dent global growth caused the Morgan Stanley Capital International Index to decline 5.8 percent since end October.

Asia’s developing economies, which exclude Japan and Australia, may grow faster than the 8.3-percent expansion forecast in September despite higher oil prices and the US financial market turmoil, ADB president Haruhiko Kuroda said during the weekend. Kuroda also said the “worst in the subprime mortgage problem is going to be over soon.’’

Losers beat gainers 56 to 40, with 60 stocks unchanged in the broader market. Shares worth P3.54 billion were traded, 37-percent less than the six-month daily average and the smallest since October 10.

SMART Communications Inc. is spending $10 million more to finance the expansion of its 3G (third generation) mobile-phone network, president Napoleon Nazareno said.

Aboitiz Power, partners to build power plants

Aboitiz Power Corp., a Philippine power producer and distributor, and its partners may spend $1.1 billion in the next three years to build four power plants in the Southeast Asian nation.

i-REMIT Inc., the nation’s largest non-bank money transfer company, reported a 230-percent jump in net income for the third quarter to P38.35 million versus P11.62 million a year earlier on the back of higher revenues of P154.8 million.

DMCI Holdings Inc. of the Consunji group ended the third quarter with a loss of P322.5 million from a net profit of P185.8 million a year ago as it decided to reverse some extraordinary and nonrecurring items in unit Maynilad Water Services Inc.

THE Philippine stock index climbed on speculation the worst may be over for US credit losses sparked by a housing slump and after the Asian Development Bank (ADB) said Asia may grow faster than earlier forecast.