Philippine stocks rebound ahead of Q1 GDP announcement

MANILA, Philippines -- The Philippine stock market outperformed the rest of Asian markets as it surged back to the 7, 200-level on Wednesday.

The bellwether Philippine Stock Exchange index jumped by 1.62 percent or 115.35 points and settled at 7,228.57, while the broader all-share index rallied by 1.24 percent or 54.20 points to 4,432.17.

Trading volume reached 1.95 billion shares worth P9.63 billion with 114 stocks advancing, 49 declining, and 40 unchanged.

All six counters were up, especially the mining and oil sector.

Analysts said Wednesday's rally was the result of a lot factors, both locally and overseas.

"The composite index surged back to the 7,200-level, partially recovering losses from the three-day sell-off that ended yesterday as Philippine government pledges to ensure sustainable high economic growth," DBP-Daiwa Securities, Inc. said.

The Philippine government is targeting a seven percent growth this year by focus on setting the necessary foundation to sustain the country's growth to higher levels.

The country is set to release its first quarter gross domestic product output on Thursday and analysts are estimating that the growth will be around 6 percent, slower than the previous 6.8 percent.

Online brokerage 2TradeAsia.com said investors have returned from their U.S. Memorial Day break, which has translated positively to the severely-bruised counters.

"Start balancing portfolios by spotting for good dividend plays versus those with healthy short-term trading angles," the online brokerage said.

Stocks in the 30-company index closed mixed. Among those that rallied were SM Investments Corp., Ayala Land, Inc., and Metro Pacific Investments Corp.