Strong GDP growth buoys share prices

MANILA, Philippines - The stock market stayed in the 8,000 level yesterday following the release of second quarter economic performance.

The benchmark Philippine Stock Exchange index (PSEi) gained 26.16 points, or 0.32 percent to settle at 8,072.75 while the broader All Shares index gained 9.80 points, or 0.20 percent, to end at 4,760.89.

The PSEi’s all time high remains at 8,127.48 which was recorded on April 10, 2015.

During yesterday’s session, the sectoral indexes, however, were a mixed bag.

The property, services and financials indexes all closed in the green while the industrial, holding firms and mining and oil ended in the red.

Total value turnover, stood at P6.31 billion as advancing stocks outnumbered decliners, 111 against 77 and 55 issues did not move.

The strong performance of the PSEi came as second quarter gross domestic product (GDP) beat expectations, amid strong construction activities fueled by higher government spending.

The government reported yesterday the economy grew 6.5 percent in the second quarter from a year earlier, higher than the 6.4 percent pace in the first quarter and above economists’ expectations of a 6.2 percent growth during the period.

Socioeconomic Planning Secretary Ernesto Pernia said the government is on track to meeting its target following the rosy second quarter GDP.

“With our country growing at 6.5 percent in the second quarter of 2017, I am pleased to inform you that we remain as one of the best-performing economies in Asia. We are well on track to meeting our full-year target growth of 6.5 to 7.5 percent,” he said.