Stocks sustain gains as GDP grows faster

MANILA, Philippines —  Share prices sustained their climb for a second straight session yesterday as investors cheered the faster pace gross domestic product (GDP) growth in the second quarter.

The 30-company benchmark Philippine Stock Exchange index capped off yesterday’s session with a 0.22 percent or 14.10-point jump to close at 6,549.27.

Also finishing higher was the broader All Shares index, which improved by 0.23 percent or 8.20 points to settle at 3,572.14.

Philstocks Financial research and engagement officer Mikhail Plopenio said the local market advanced as investors digested the second quarter GDP data which posted an expansion of 6.3 percent, with strong growth numbers seen in government spending and investment.

“Many cheered the data as it is faster than the first quarter’s 5.8 percent. It also brought the average GDP growth in the first half to six percent which is the government’s (lower end) target for the year,” Plopenio said.

Luis Limlingan of Regina Capital said Philippine shares bucked the trend in the US, where equities dipped Wednesday as economic concerns, geopolitical conflicts and the looming November elections kept investors on edge.

“Investors continued with their bargain hunting from the previous session as the index attempts to make a push for 6,600 again,” Limlingan said.

Net market value turnover, however, thinned to P3.7 billion from the previous day’s P4.58 billion.

Sectoral gauges were a mixed bag at three apiece. Services index led those in the green with a 0.89 percent increase, while property suffered the biggest loss at 0.60 percent.

Market breadth was positive as advancers crushed decliners, 106 to 81, while 41 issues were unchanged.

ACEN led the index members with an 8.06 percent gain, while BPI posted the largest drop at 2.17 percent.