Stocks rise on growth report

Most stocks rebounded sharply as investors Thursday cheered the 7.5-percent Philippine growth rate for the second quarter.

The main-share Philippine Stock Exchange index gained 206.15 points, or 3.59 percent, to close at 5,944.21. Low valuations after the downturn of the last two days also emboldened bargain-hunters.

Domestic investors fueled the day’s rebound while foreign investors continued to cash out of emerging markets like the Philippines. There was net foreign selling amounting to P1.54 billion for the day.

The local stock barometer was up by 92.58 points ahead of the release of the second quarter report. But the index further surged after the country’s growth rate exceeded the general forecast of 7.3 percent.

A 7.5-percent GDP growth rate, on top of 6.3 percent, is a “rare feat,” said Bank of the Philippine Islands economist Emilio Neri Jr.

The quarter-on-quarter seasonally adjusted growth rate of 1.4 percent was likewise “not bad considering exports are still very weak,” Neri said.

All counters Thursday rose, led by the property, financial and holding firm counters which went up by 4 percent.

Jollibee (+8.44 percent) was the day’s biggest gainer, followed by BDO (+7.48 percent). EDC, Ayala Corp., ICTSI, Megaworld and AGI all rose by over 6 percent, while AEV, SM Prime and ALI gained by over 5 percent.

Value turnover for the day amounted to about P9.7 billion. There were 117 advancers against 38 decliners.  Doris C. Dumlao