High GDP growth for PH boosts stock market past 5,600

Photo from pse.com.ph

MANILA, Philippines — A surprisingly high third quarter domestic economic growth extended the local stock market’s bull run on Wednesday, allowing the main index to end above 5,600 for the first time in history.

Shrugging off lackluster regional markets, the main-share Philippine Stock Exchange index climbed by another 47.27 points or 0.85 percent to mark its best ever finish at 5,633.72. The index closed near the intra-day peak of 5,636.33, likewise a new milestone for the market.

This is the 31st time this year that the market has posted new record highs.

“It’s Christmas in November. There are a lot of surprises – GDP (gross domestic product), strong peso and all time high market with high value turnover,” said Astro del Castillo, managing director at investment management firm First Grade Finance.

“Upon the announcement of GDP, most companies that are related to growth areas led the market,” he said.

It was reported on Wednesday morning that Philippine GDP grew by 7.1 percent in the third quarter, beating the consensus market forecast of 5.4 percent.

On the other hand, the peso has rallied to the 40-levels against the US dollar.

Value turnover was heavy at P8.65 billion but buyers stuck mostly to large-cap stocks. As such, there were 79 advancers that only narrowly edged out 78 decliners. The upswing was led by index heavyweight PLDT (+1.41 percent), the day’s most actively traded company.

Other index stocks that contributed most sharply to the PSEi’s surge to record highs were SM Prime (+4.28 percent), MPI (+3.93 percent), Meralco (+3.53 percent), Manila Water (+3.12 percent), JG Summit (+1.93 percent), AGI (+1.87 percent), BDO (+1.72 percent) and AC (+1.46 percent).

The non-index stocks that rose in heavy volume were APM (+5.19 percent), Philweb (+2.15 percent), iPeople (+16.88 percent) and PNB (+3.11 percent).

Across the region, most Asian markets ended lower as investors were jittery over the US fiscal position.