Growth figures giving market plenty to chew on; PSEi gains

The benchmark Philippine Stock Exchange Index (PSEi) on Wednesday ended in positive territory as investors turned their attention to corporate earnings and prospects for recovery after the economy expanded in the second quarter of the year.

The PSEi closed higher by 0.66 percent, or 43.63 points, to 6,666.86 while the broader all-shares index rose by 0.38 percent, or 15.63 points, to 4,111.61.

Gains came a day after the government announced the economy had expanded by 11.8 percent in the second quarter, partly due to the so-called base effect after last year’s significant contraction.

“Many are also assessing whether the country can sustain this level of expansion in the coming quarters once base effects fade,” Luis Gerardo Limlingan, managing director at Regina Capital Development, said in a research note.Analysts also pointed to the surprise growth figures from several companies that have reported their second quarter earnings thus far.

For BDO Unibank Inc. chief strategist Jonathan Ravelas, the PSEi remained in a consolidation range and was expected to trade within the 6,300-6,700 area in the near-term.

Subsectors also ended mixed on Wednesday. Property-led gainers with a 2.7-percent increase while mining and oil and services closed lower by 1.05 percent and 1.08 percent, respectively.

Data from the PSE showed 1.8 billion shares valued at P6.83 billion changing hands on Wednesday. Losers outnumbered advancers, 84 to 81, while 56 companies closed unchanged.

AC Energy Corp. was the most actively traded during the session as it gained 1.65 percent to P9.22 per share.

It was followed by Ayala Land Inc., up 3.01 percent to P34.20; Monde Nissin Corp., up 0.47 percent to P17; SM Prime Holdings Inc., up 3.24 percent to P35; and Premier Horizon Alliance Corp., unchanged at P1.31 per share.