PSEi gathers strength ahead of Q3 data

MANILA, Philippines - Philippine stocks rose yesterday, ignoring the decline in global share prices as investors took positions ahead of the release of the third quarter economic data, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) returned to the 7,000 level, closing 66.54 points, or 0.95 percent, higher at 7,059.14, while the broader All Shares barometer rose 26.90 points to close at 4,053.94.

All other indexes closed in positive territory, with the industrial and holding sectors recording the biggest gains with an increase of 93.97 points and 53.13 points, respectively.

Value turnover likewise improved to P7.30 billion as advancers significantly edged out decliners, 102 to 66 while 42 stocks were left unchanged.

Analysts said share prices rose on investor optimism the third quarter economic growth would be better-than-expected.

According to yesterday’s Market Call, published by First Metro Investments Corp. and UA&P Capital Markets Research, domestic demand likely boosted third quarter growth.

“Despite weak export demand in third quarter, we remain optimistic that domestic demand will boost growth this quarter as well as in Q4. We still see a strong 6.2 percent GDP growth this quarter, accelerating further upwards of 6.8 percent in Q4, and thus, bringing full year gain to 6.1 percent,” it said.

The report also noted little pressure on inflation as crude oil prices are again under downward pressure with the re-entry of Iran in the output scene.