Philippine stocks rise amid global optimism

MANILA, Philippines—Most local stock prices edged higher on Wednesday as investors caught up with the improved risk appetite seen in offshore markets but gains were capped by a slower-than-expected second-quarter Philippine domestic economic growth rate of 3.4 percent.

The main-share Philippine Stock Exchange index rose by 42.94 points, or about 1 percent, to finish at 4,348.50.

The upbeat opening for the week was expected in light of the optimism that swept across global markets while local markets were closed the previous two days.  However, while offshore markets preoccupied investors in the past few weeks, the much-awaited second-quarter Philippine economic report disappointed the markets.

The country’s second-quarter gross domestic product growth rate of 3.4 percent fell below market expectations of about 4.9 percent and was also short of the government’s forecast of 4.5-5.5 percent for the period.  It was, however, faster than Thailand’s GDP growth rate of 2.6 percent and Singapore’s 0.9 percent for the same period albeit slower than China’s 9.5 percent, Indonesia’s 6.5 percent, Vietnam’s 5.7 percent, and Malaysia’s 4 percent.

At the stock market, all counters were up but the mining and oil, property, and services counters led the upswing with gains of 2.8 percent, 2.72 percent and 1.45 percent for their respective indices.

Turnover for the day amounted to P4.9 billion.

There were 101 advancers as against 42 decliners, while 36 stocks were unchanged.

The index was led by Lepanto “A” (only for local investors) and “B” (open to both foreign and local investors), PLDT, Metrobank, AGI, Ayala Land, SM Investments, BPI, Megaworld, Philex and Security Bank. San Miguel, Belle and Semirara – which will all be included in the PSEi effective September 12 – also gained in heavy trade.  Boulevard and Minerales Industrias were also up in active trade.

On the other hand, URC, Aboitiz Power and SM Prime were in the red.

Across global markets, there has been an improvement in risk appetite in recent days. “Economic news continues to worsen yet hopes for more (US) Fed (Federal Reserve) stimulus continue to support markets,” investment bank Credit Agricole CIB said.