PSEi keeps upswing, hitting 7,146.35 ahead of GDP for Q2

Philippine Stock Exchange. AFP FILE PHOTO

MANILA, Philippines—The local stock barometer extended its winning streak for the fifth session on Tuesday, tracking an upbeat sentiment in Wall Street to set a new peak for this year ahead of the Philippines’ second quarter economic data report.

The Philippine Stock Exchange index added 13.26 points or 0.19 percent to close at 7,146.35, the highest finish for 2014, ahead of the release of the country’s second quarter gross domestic product (GDP) report on Thursday. The local markets reopened after a long weekend break on Tuesday to mark the first trading day after the so-called “ghost month.”

“We believe that the market is trading ahead of the GDP figure. With the market recently breaching key resistance levels on heavy supply, the market will be vulnerable if results are weak (below 5.7 percent). Positive results will help justify the higher levels,” said local stock brokerage DA Market Securities, noting that the country’s second quarter GDP growth was projected between 6.2 and 6.7 percent.

“Currently, resistance is technically at 7,200. We may see this week’s market performance to sustain above 7,100,” the brokerage said.

The day’s upswing was led by the services and mining/oil counters, which both advanced by over 1 percent.  The property counter was modestly higher while the financial, industrial and holding firm sub-indices ended lower.

Value turnover for the day amounted to P10.26 billion as investors snapped up large-cap issues. Despite the PSEi’s gain, however, market breadth was negative as the 76 advancers were outnumbered by 93 decliners while 49 stocks were unchanged.

The PSEi’s rise was led by Semirara, which gained 4.47 percent while parent firm DMCI rose by 2.32 percent.  Semirara said the Energy Regulatory Commission had granted the motion of its power unit SEM-Calaca Power Corp. for writ of execution thereby directing the Power Sector Asset and Liabilities Management Corp. (PSALM) to pay the amount of P467.7 million covering receivables arising from the transition supply contract from the period January 2010 to June 25, 2010.

The main index was also led higher by index heavyweight PLDT, which gained 2.73 percent and was the most actively traded company for the day.

Megaworld, SM Prime, EDC, BPI and LTG also contributed modest gains for the day.

On the other hand, the PSEi’s rise was tempered by the decline on URC and GT Capital, which both fell by over 2 percent. Metrobank also fell by 1.37 percent while shares of BDO, AC, Petron, Globe and AP also slipped.

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