PSEi bounces back ahead of GDP release

MANILA, Philippines — The local stock market posted modest gains after hitting its worst finish in three years on Wednesday.

The bellwether Philippine Stock Exchange index advanced by 0.30 percent or 17.53 points to end yesterday’s session at 5,835.59, while the broader All Shares index settled higher by 0.26 percent or 9.05 points to 3,543.43.

“Philippine equities crept higher ahead of the GDP (gross domestic product) report, although value turnover remained tepid at a little over P5 billion as most investors remain on the sideline,” AP Securities Inc. said.

RCBC chief economist Michael Ricafort said the country’s third quarter GDP, which will be released today, is expected to be softer compared to 5.5 percent growth in the second quarter “in view of recent political noise that could slow down some government spending especially on infrastructure, but could still support future local policy rate cuts that could further reduce borrowing costs.”

Ricafort said the market’s performance yesterday was also boosted by the slightly better local employment data, with the unemployment rate for September falling to 3.8 percent.

All sectors were in the positive territory, except for industrial which slipped by 0.16 percent.

Mining and oil led the charge with a 4.46-percent surge, followed by financials which grew by 1.03 percent.

Total value turnover stood at P5.42 billion, slightly higher from the previous day’s to P4.72 billion.

Advancers crushed decliners, 98 to 68, while 72 issues did not change hands.

ICTSI stayed as the top-traded stock, increasing by 0.38 percent to P525 per share, followed by DigiPlus and SM Investments which shed 1.63 percent and 1.04 percent, respectively, to P24.20 and P714.50.