THE LOCAL stock barometer ended slightly higher on Wednesday as optimism on the country’s economic growth offset fresh US interest rate jitters.
Rising for the fourth straight session, the Philippine Stock Exchange index overcame the slump in early trade. Firming up in afternoon trade, the main index ended 9.46 points or 0.13 percent higher at 7,534.30.
Across the region, trading sentiment was mixed as Japan’s first quarter economic growth beat expectations while jitters on the US Federal Reserve’s rate hike escalated.
“Despite the US sell-off yesterday with the thinking behind a June hike as a pre-emptive move ahead of what will be an especially contentious election in November preventing in theory an a-political Fed from hiking in September or November, markets cheered as the Japan GDP (gross domestic product) print expanded ahead of all forecasts by 1.7 percent,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
“With all the above in mind, the Philippines traded rather mix as traded oil prices above $48 with the prospect of a US inventory drawdown, while nickel and copper are retreating. Finally, the market closed in the green as expectations are running high that first quarter GDP will be able to meet analysts expectations when the report is given (Thursday),” Limlingan said.
Consensus view based on a Bloomberg poll is a first quarter Philippine GDP growth of 6.9 percent year-on-year, partly driven by an escalation in spending ahead of the presidential elections.
At the local market, the day’s gains were led by the mining/oil counter which rose by 2.92 percent while the financial, holding firm and property counters also firmed up. On the other hand, the industrial and services counters slipped.
Value turnover for the day amounted to P9.96 billion. There were 102 advancers versus 101 decliners while 38 stocks were unchanged.
The PSEi was led higher by AGI which racked up 2.39 percent while SM Prime and BPI both gained over 1 percent. BDO, URC, AC, SMIC, AEV and DMCI all firmed up.
Outside of the PSEi, notable gainers included Security Bank (+1.1 percent). The bank is debuting into the MSCI Philippines index after end-May.
Vista Land was up by another 3.79 percent on news that a scion of the Villar family, Las Pinas Rep. Mark Villar would become the Department of Public Works and Highways Secretary.
On the other hand, Megaworld fell by 2.28 percent while GTCAP slipped by 1.04 percent. ALI, Jollibee, Metrobank, MPI, JG Summit and PLDT all declined.
Another notable decliner outside the PSEi was TKC Metals, which slid by 18.52 percent.