Stocks rebound on encouraging GDP numbers

MANILA, Philippines —  Local stocks rebounded from a two-day slump after Philippine economic growth was reported at 5.6 percent yesterday.

The Philippine Stock Exchange index (PSEi) rose by 24.43 points or 0.37 percent to 6,646.44, ending its back-to-back losing streak.

The broader All Shares index likewise ended in the positive territory, climbing by 11.78 points or 0.34 percent to settle at 3,499.49.

“Philippine shares were bought up once again as the final quarter of growth showed that the country grew 5.6 percent for both the quarter and full year, which was ahead of the latest Bloomberg consensus of 5.2 percent,” Luis Limlingan of Regina Capital said.

Limlingan said the International Monetary Fund (IMF)’s upgrading of its 2024 economic growth forecast for the Philippines also helped buoy local shares.

“On the back of robust recovery in investments and exports, the IMF sees the Philippines growing by six percent this year from the previous 5.9 percent forecast,” he said.

Property led the local indexes with a 1.92 percent increase. Industrial and holding firms, meanwhile, finished in the red, declining by 0.62 percent and 0.63 percent, respectively.

Total value turnover expanded to P6.76 billion from the previous day’s P4.48 billion.

Market breadth was positive as advancers edged out decliners, 99 to 78, while 55 shares did not change.

Elsewhere in Asia, equities were mixed after a tepid performance on Wall Street, with traders keenly awaiting what the Federal Reserve has to say after its much-anticipated policy meeting later in the day.

A key Treasury auction, US jobs figures and earnings from some of the world’s biggest companies including Apple and Amazon were also in view this week.

That all comes while the crisis surrounding China’s fallen property titan Evergrande casts a shadow and stokes worries about the world’s number two economy.

While the Dow clocked up another record in New York, the S&P 500 and Nasdaq went into reverse as a forecast-beating read on US job openings reinforced the view that the labor market remained resilient despite interest rates sitting at two-decade highs.– AFP