Index rallies ahead of GDP results

MANILA, Philippines – The stock market rallied yesterday ahead of today’s announcement of the country’s 2015 economic performance, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) soared 195.62 points, or 3.10 percent, to finish at 6,507.22, while the broader All Shares index climbed 98.39 points, or 2.71 percent, to end at 3,722.40.

Most economists expect GDP for 2015 to be lower than expected but still among Asia’s fastest-growing economies.

Meanwhile, Asian stocks held near the day’s lows  as a relapse in oil prices and fresh drops in Chinese stocks made sentiment even more fragile before a US Federal Reserve policy statement due later.

MSCI’s broadest index of Asia-Pacific shares outside Japan was near the day’s lows with meager gains of 0.2 percent. Australian shares dropped 1.2 percent.

With Chinese stocks falling more than three percent after a 6.4 percent tumble in the previous session, Asia failed to draw much support from an overnight bounce on Wall Street led by upbeat earnings results and a bounce in crude oil. US stock futures were pointing to a weaker start.

“There are concerns Apple is reaching the limits of iPhone growth and China won’t make up for a slowdown in the rest of the world,” Mark Matthews, head of Asia research and a managing director at Bank Julius Baer & Co. in Singapore wrote in a note.

“Having said that, US stocks are still expensive on the whole. But there are really interesting opportunities elsewhere, in select bombed-out bonds and currencies.” – Iris Gonzales