2nd quarter GDP data fuel bourse to extend gains

THE PHILIPPINE Stock Exchange index (PSEi) yesterday extended gains for the fourth straight day to close in on its record-high finish more than two years ago, driven this time by second-quarter economic growth data that kept the country in Asia’s lead in this regard.

The 30-member bellwether index hit an 8,105.01 intraday peak before tempering early gains to close the day at 8,072.75, 26.16 points or 0.32% more than the preceding day’s finish. The allshares index similarly rose by 9.8 points or 0.2% to end 4,760.89.

It remains to be seen today whether PSEi will test or top its record-high finish of 8,127.48 recorded on April 10, 2015.

“It was still up after the fourth day, after the release of GDP ( gross domestic product) wherein GDP was at 6.5%. So clearly it’s saying that the growth of our economy locally is moving upward despite high spending during the election last year,” Diversified Securities, Inc. equities analyst Aniceto K. Pangan said in a phone interview yesterday. “This created a positive investor sentiment further moving the market upwards.”

The Philippine Statistics Authority reported yesterday that GDP grew by 6.5% last quarter, a tad faster than January-March’s 6.4% but slower than the year-ago 7.1% that benefited from spending related to the May general elections. Year-to-date GDP growth now averages 6.45% against the government’s 6.5-7.5% full-year target for 2017.

For Regina Capital Development Corp. Managing Director Luis A. Limlingan, “Philippine equities met with a lukewarm reception the latest 2Q GDP figure, as the 6.5% mark was slightly above the median estimate of 6.4%.”

“Investors still bought into the news as the index attempted another crack at the 8,100 level.”

A total of 1.17 billion shares worth P6.31 billion changed hands, compared to Wednesday’s 1.54 billion issues worth P12.74 billion.

Advancers beat decliners, 111 to 77, while 55 issues were unchanged.

Sectoral indices were equally divided between those that gained and those that lost.

Advancers consisted of property that increased by 27.04 points or 0.71% to close at 3,826.8, financials rose 13.84 points or 0.69% to 2,012.47 and services climbed 10.64 points or 0.62% to 1,711.64.

Those that lost consisted of holding firms that declined by 8.59 points or 0.10% to finish 7907.37, mining and oil which dipped by 12.61 points or 0.09% to 12,864.95 and industrial which shed 9.68 points or 0.08% to close 11,059.7.

The bourse yesterday marked its eighth straight trading day of net foreign buying, recording P352.81 million that was the biggest in seven days.