PSEi bounces back as investors anticipate good GDP news for Q1
MANILA, Philippines — The local stock market rebounded after a two-day decline on Monday as foreign funds took position ahead of the release of Philippines’ first quarter gross domestic product (GDP) numbers.
The main-share Philippine Stock Exchange index added 53.19 points or 0.78 percent to close at 6,870.90.
“This is due to fund flows as foreign investors are anticipating good economic numbers for the first quarter,” said Manny Cruz, chief strategist at Asiasec Equities Inc.
The government is set to announce the country’s first quarter economic performance at the end of this month.
All counters were up but holding firms and property sub-indices led the day’s rally with gains of over 1 percent.
Value turnover for the day amounted to P8.17 billion. There were 98 advancers that bear 69 decliners while 43 stocks were unchanged.
Investors picked up shares of AGI and Jollibee, both rising by over 3 percent, while DMCI (+2.88 percent) likewise gained. Metrobank, SMIC, ALI, MPI, EDC and Bloomberry also rose by over 1 percent.
Investors also picked up shares of BDO, SM Prime and Globe. Outside of PSEi stocks, Security Bank (+2.9 percent) and DoubleDragon (+1.76 percent) gained in heavy volume.
On the other hand, LTG (-9.46 percent) fell sharply on disappointing first quarter profit results.
With most of its subsidiaries posting slower profits or even incurring a loss in the case of Tanduay Distillers, one dealer said annualized earnings would be only P6 billion or way below the market consensus of P9 billion.
Investors also sold down Puregold (-3.76 percent), Meralco (-1.12 percent), URC (-0.52 percent) and Ayala Corp. (-0.31 percent).
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