Shares rebound ahead of BSP policy review, GDP

POSITIVE first-half corporate results buoyed local equities on Wednesday, with some investors also optimistic about secondquarter economic growth data and the central bank’s policy meeting today.

The bellwether Philippine Stock Exchange index (PSEi) rose 1.62% or 125.61 points to close at 7,851.46 yesterday. The broader allshares index also climbed 1.57% or 73.02 points to finish at 4,708.61.

“Philippine stocks closed higher on the release of corporate earnings, with some already placing bets ahead of the BSP (Bangko Sentral ng Pilipinas) meeting and GDP (gross domestic product) release,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

He said heavyweights like SM Prime Holdings, Inc. and Ayala Land, Inc. boosted the index as the former reported a doubledigit income growth for the first semester of the year while the latter expressed plans to offer bonds before yearend to finance its capital expenditure.

“We can also assume that investors are anticipating for the release of the 2Q GDP reports [today] which, according to consensus, may hit 6.8%,” Jervin S. de Celis, trader at Timson Securities, Inc., said in a mobile message yesterday.

Should the actual figure match expectations, the country’s economic performance from April to June would log a faster pace compared with the first quarter’s print, which was revised down to 6.6% from 6.8%.

Investors focused on these local developments and brushed aside recent developments in the trade tensions between the China and the United States, according to Mr. Limlingan, who noted regional markets’ performance likewise pushed up buying sentiment at home.

All sectoral counters finished with gains on Wednesday.

Services led the rally, soaring 3.18% or 47.55 points to close at 1,540.51. Industrials jumped 2.06% or 225.53 points to 11,125.09; property climbed 1.89% or 72.3 points to 3,888.59; holding firms went up 1.29% or 99.66 points to 7,776.12; mining and oil increased 0.7% or 71.91 points to 10,290.33; and financials ended higher by 0.5% or 9.35 points to 1,862.68.

Value turnover increased to P8.64 billion from Tuesday’s P5.22 billion as 1.25 billion issues changed hands.

Advancers outnumbered losers, 116 to 75, while 52 issues were unchanged.

Foreigners turned buyers, with net purchases logged at P325.87 million, a reversal of Tuesday’s net sales worth P112.43 million.

Most other Southeast Asian markets gained in line with broader Asian peers, supported by upbeat Wall Street earnings.

Asia shares ex-Japan rose modestly in the middle of a strong second-quarter US earnings season and on expectations that Beijing will ramp up fiscal stimulus to cushion the impact of its trade dispute with Washington.

The benchmark S&P 500 was within striking distance of a record high on Tuesday, powered by gains in technology stocks. •