PSEi breaches 7,400 level as GDP report cheers investors
The main stock barometer rallied past the 7,400 mark on Tuesday as the country’s better-than-expected third quarter economic performance and the easing of quarantine restrictions in Metro Manila boosted investor sentiment.
The main-share Philippine Stock Exchange index (PSEi) added 45.45 points or 0.62 percent to close at 7,441.67, the best level seen in 21 months.
The recent stream of third quarter corporate earnings results also brought cheers to the market.
“The bulls continue to gain strength. News of an improving economy was well-received by the market. The string of good news is an early gift for most as confidence is being felt in the market. It seems like investors will enjoy their sleigh ride for the rest of the year,” said Astro del Castillo, managing director at local fund management firm First Grade Finance.
The Philippines recorded a 7.1 percent year-on-year growth in gross domestic product (GDP) in the third quarter, much better than the Bloomberg consensus forecast of 4.9 percent. Seasonally adjusted GDP improved by 16 percent from the second quarter.
“However, expect the index to take a pause as a technical correction is around the corner. It will be a good opportunity to accumulate as a Santa Claus rally seems inevitable,” Del Castillo added.
