Deep breath before the plunge? PSEi up before GDP news
The local stock barometer gained on Monday, ending a six-day decline ahead of the release of the country’s first quarter economic report card and the upcoming rebalancing of closely tracked MSCI indices.
The main-share Philippine Stock Exchange index (PSEi) added 58.7 points, or 0.94 percent, to close at 6,317.41 in thin trade. This movement was in line with mostly higher regional markets.
“Philippine shares closed higher as bets began to pour on the latest first quarter GDP (gross domestic product) figures, more earnings releases and the possible easing of US monetary policy following the weaker April jobs report,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
Based on a Bloomberg survey, economic recession persisted in the first quarter with a median forecast of a year-on-year decline of 3.2 percent.
Limlingan said investors also believed that easing monetary policies would drive a historic rebound of the US market and allow it to stay in place for longer.
At the local market, all counters ended higher, led by the mining/oil counter, which advanced by 1.97 percent.
The holding firm and services counters both added over 1 percent, while the financial, industrial and property counters firmed up by less than 1 percent.
Total value turnover for the day amounted to P4.57 billion. There was net foreign selling of around P329.46 million.
There were 116 advancers that outnumbered 97 decliners, while 46 stocks were unchanged.
ICTSI and SM Investment led the PSEi higher, rising by 4.28 percent and 2.07 percent, respectively.
Lenders BDO and Metrobank both added over 1 percent.
Notable gainers outside the PSEi included AC Energy and Greenergy, which rose by 3.76 percent and 3.27 percent, respectively.
On the other hand, PLDT declined by 2.6 percent, while Ayala Land and SM Prime both slipped by less than 1 percent.
Outside the PSEi, Converge fell by 0.95 percent. —Doris Dumlao-Abadilla inq
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.