Stocks climb on hopes of good PHL growth data
THE MARKET ended in the green yesterday as investors picked up bargains after days of volatile trading, and on expectations of good Philippine thirdquarter gross domestic product (GDP) data.
The bellwether Philippine Stock Exchange index ( PSEi) bounced back by 109.13 points or 1.59% to end yesterday’s trading at 6,966.28 from Tuesday’s 6,857.15 points.
The index is now back in the green for the year from its end2015 close of 6,952.08.
The broader all shares index also recouped 48.12 points or 1.15% to end at 4,211.45.
Lexter A. Azurin, head of research at Unicapital Securities, Inc., said shares rose on bargain hunting and as investors anticipate a good GDP growth print for the third quarter.
“What led the rally is also anticipation of Q3 GDP with indications pointing at favorable numbers. Investors were betting on good GDP,” he added.
Luis A. Limlingan, business development head at Regina Capital Development Corp., said “the local stock market sought comfort after days of heavy selling with the government’s hint that Q3 GDP would finish at possibly higher than 7%.”
Socioeconomic Planning Secretary Ernesto M. Pernia — who last week estimated 6.3-7.3% third-quarter GDP growth partly on expectations of flat, farm sector performance — said on Tuesday that the surprise 2.98% farm output expansion in the period could have helped fuel GDP to surpass its 7% second-quarter clip.
“In addition, crude oil: WTI ( West Texas Intermediate) crude surged over 5.5% to $ 45.75/ bbl ( barrel), the largest in seven months following renewed OPEC (Organization of the Petroleum Exporting Countries) efforts to shore up a proposed production cut,” Mr. Limlingan said in a text message. The OPEC will meet on Nov. 30.
US stock indices also rose “following a sharp 6% rebound in crude prices, strong October retail sales and a respite in the bond market,” the analyst added.
All six sectoral indices advanced, led by property, which went up by 100.31 points or 3.33% to 3,105.03. The holding firms counter followed as it was up 97.05 points or 1.38% to 7,083.37, and services ended higher by 14.27 points or 1.09% to 1,315.47.
Industrials rose 82.19 points or 0.75% to 10,975.68; financials gained eight points or 0.46% to 1,716.98; and mining and oil inched up 16.42 points or 0.14% to 11,766.71.
Foreigners, however, continued to dump their shareholdings with net sales reaching P1.37 billion, slightly higher than Tuesday’s P1.33-billion outflow.
Value turnover fell to P6.52 billion from P7.7 billion after 1.27 billion shares changed hands.
Advancers beat decliners, 104 to 75, while 45 issues were unchanged.
For today, Mr. Azurin said the PSEi could trade at the 6,8007,200 level “to retest resistance levels” as volatility is seen to continue the next few days amid both overseas and local drivers.