The benchmark Philippine Stock Exchange index (PSEi) edged higher on Tuesday despite the latest gross domestic product numbers showing the economy expanded slower than expected to 7.4 percent in the second quarter of the year.
The PSEi rose 0.54 percent, or 34.73 points, to 6,468.97 while the broader All Shares index added 0.22 percent, or 7.71 points, to 3,456.44.
The Bank of the Philippine Islands (BPI) said growth in the second quarter might have been higher if oil prices were stable.
Economists polled by Reuters expected the economy to grow by 8.6 percent in the second quarter.
“Nonetheless, the economy has shown its resilience despite this headwind. The impact on mobility has been minimal so far despite the increase in transport costs,” BPI said.
The lender added that slower growth was expected in the second half of the year due to “fading base effects and the impact of inflation.”
“Pent up demand may still be present but most likely it’s as strong as before. Based on historical experience, inflation at this level usually leads to a slower household consumption growth,” the bank said.
Trading volume on Tuesday pushed higher as 956.56 millions shares valued at P12.2 billion changed hands.
Stock exchange data showed a single block sale of 210.32 million Ayala Land Inc. shares at P25.20 each or a total of P5.3 billion. It was not immediately clear who the sellers or buyers were.
Net foreign selling on Tuesday rose to P5.64 billion.
Ayala Land was the top traded stock as it jumped 4.56 percent to P26.35 per share.
It was followed by International Container Terminal Services Inc., down 1.63 percent to P181; BDO Unibank Inc., down 2.46 percent to P115; SM Investments Corp., up 3.47 percent to P805; and Ayala Corp., down 0.98 percent to P708 per share.
Overall, there were 112 advancers against 82 decliners while 42 companies closed unchanged, PSE data showed.