PSEi stays above 8,000

The local stock barometer firmed up on Thursday, staying above the 8,000 mark, as the country’s second quarter gross domestic product (GDP) grew year-on-year at a slightly faster than expected pace of 6.5 percent.

The main-share Philippine Stock Exchange index added 26.16 points or 0.33 percent to close at 8,072.75, gaining for the fourth straight session and ending at a new high for the year.

The main index hit as high as 8,105.01 in early trade but pared gains as investors pocketed gains after the second quarter GDP growth rate was released.

The 6.5 percent Philippine GDP growth rate was slightly better than the 6.4 percent growth consensus and the 6.4 percent first quarter growth rate.

“The latest GDP growth numbers support our positive view on the economy. Growth should remain strong going forward as the country continues to benefit from the pick-up in government spending which already started to materialize in second quarter 2017,” COL head of research April Lee-Tan said in a research note.

“The growing likelihood that the tax reform program will be passed soon should also help boost both consumer and government spending growth, and support a faster GDP growth going forward,” she added.

Thursday’s finish marked the PSEi’s highest closing rate since ending at 8,100.48 on July 27, 2016.

Since the start of the year, the PSEi has now gained a total of 1,232.11 points or 18 percent. It’s now moving closer to the all-time high level of 8,127.48 seen on April 10, 2015.

The day’s upswing was led by the financial, services and property counters. On the other hand, the industrial, holding firms and mining/oil counters slipped.

Total value turnover for the day stood at P6.31 billion. There were 111 advancers that edged out 77 decliners while 55 stocks were unchanged.

Foreign investors were net buyers, resulting in P352.81 million in net inflows to the market.

The PSEi was led higher by Security Bank, which rose by 2.35 percent. The bank got a boost in weight from the latest MSCI rebalancing which will take effect at the close of Aug. 31 trades.

BDO, Metrobank, Ayala Land, PLDT and Metro Pacific all gained over 1 percent while Ayala Corp., ICTSI, Megaworld and SM Prime also gained.

On the other hand, DMCI fell by 1.26 percent while Jollibee, SM Investments, GT Capital and Puregold also slipped.