The local stock barometer raced to the 5,900 mark on Thursday despite news about the second quarter gross domestic product (GDP) contracting by 16.5 percent year-on-year, officially putting the Philippines on an economic recession.
The main-share Philippine Stock Exchange index (PSEi) added 69 points or 1.18 percent to close at 5,902.58, firming up for the third straight session. The local index tracked mostly upbeat regional markets as the market saw some foreign inflows.
“The PSEi continued to advance today despite disappointing GDP figures as the contraction in Q2 GDP, which slips the economy into a recession, was already factored in by the market. Although analysts were expecting a contraction, current data exceeded most estimates,” said Christopher Mangun, head of research at AAA Equities.
The economic recovery seen in June was not as strong as most were expecting, he said.
“The market moved slightly lower for most of the trading day and then it jumped right at the close to end at its high for the day. Buyers waited until the close to get it, causing several blue-chips to end at their highs for the day,” Mangun said.
The PSEi was aided most by the industrial and holding firm counters, which both rose by over 1 percent.
The services and property counters, on the other hand, both gained less than 1 percent.
Only the mining/oil counter was in the doldrums for the day, having declined by 1.96 percent.
Value turnover for the day amounted to P6.53 billion. There was P551.31 million worth of net foreign buying for the day.
—DORIS DUMLAO-ABADILLA