Index leaps past 7,400, highest in 21 months

MANILA, Philippines — Pumped up by a higher-than-expected economic growth in the third quarter, investors pushed share prices past the 7,400 mark to close yesterday’s trading at a 21-month high.

The benchmark Philippine Stock Exchange index (PSEi) extended its rally for a sixth day as market investors cheered the surprisingly better third quarter economic performance.

Gross domestic product (GDP) expanded 7.1 percent year-on-year in the third quarter, against a median mark of 4.7 percent among economists.

“The index soared to a new COVID-era high after Q3 GDP growth printed at 7.1 percent, slower than the revised 12 percent growth in Q2, but much higher than the 4.7 percent growth expected by most analysts,” AB Capital Securities said in a market commentary.

Investors also welcomed the further easing of the economy as the alert level was downgraded, which means stronger growth prospects in the fourth quarter.

The PSEi ended at 7,441.67 yesterday, up 45.45 points or 0.61 percent, while the broader All Shares index gained 20.97 points or 0.46 percent to finish at 4,531.86.

This was the highest level for the PSEi since it finished at 7,507.20 in Feb. 7 last year.

A total P9.492 billion worth of shares changed hands, with advancers edging out decliners, 103 to 87, while 48 issues were unchanged.

Mizuho Bank analysts said there is now a clear case to be made that growth momentum in the Philippines is on a better footing.

“Social restrictions across the archipelago have been eased, vaccination rates have picked up, and activity data is beginning to show signs of life,” they said in a report.

“This is not to say that the recovery is robust, but that it is promising.”