PHILIPPINE shares ended in positive territory on Friday ahead of the long weekend break as the positive effects of the third-quarter US economic performance were carried over to the local market. The bellwether Philippine Stock Exchange index (PSEi) rose 74.61 points or 1.19% to 6,324 while the broader all-shares index went up 26.49 points or 0.7% to 3,779.57. Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the local market bounced back after the announcement of the US gross domestic product (GDP) for the third quarter.

“The local bourse rebounded by 1.19% as investors hunted for bargains after the huge loss of the market recorded yesterday (Thursday),” Ms. Alviar said.

On Thursday, the United States Department of Commerce announced that the country’s GDP rose by 33.1% despite recording the highest number of coronavirus disease 2019 (COVID-19) cases globally.

“The better-than-expected US GDP at a 33.1% annualized pace in the third quarter lifted sentiment which spilled over in the bourse as well,” Ms. Alviar said.

As of Oct. 30, the US still leads all countries in terms of COVID-19 positive cases at 8.95 million, according to the Johns Hopkins University dashboard.

Back home, Ms. Alviar said local investors remain hopeful that economic recovery will be sustained as more establishments resume operations.

“Investors are also waiting for the third-quarter earnings results of companies,” she said.

For Darren Blaine T. Pangan, head of online trading and trader at Timson Securities, Inc., the local market ended in green territory as investors remained optimistic due to the slower rate of increase in the country’s COVID-19 cases.

“Market participants may also be pricing in the economic benefits brought about by the increased mobility in Metro Manila,” he said in a mobile phone message.

According to the recent bulletins of the Department of Health (DoH), the Philippines recorded 2,053 new COVID-19 cases on Wednesday, while 1,761 additional infections were posted on Thursday.

Most of the market’s sectoral indices improved on Friday’s close except for the services index, which fell 3.4 points or 0.23% to 1,439.44.

Mining and oil climbed 156.21 points or 2.11% to 7,529.47; property increased 62.5 points or 2.06% to 3,053.82; holding firms improved 94.91 points or 1.46% to 6,581.36; industrials picked up 0.52%; and financials improved 0.24% or 3.01 points to 1,224.3.

Advancers bested decliners 135 against 81, while 37 names ended unchanged.

Value turnover on Friday amounted to P7.29 billion with 2.38 billion issues switching hands, against P6.66 billion with 3.36 billion issues during the previous trading day.

Net foreign selling reached P1.20 billion, higher than the P942.94 million posted on Thursday.

“The nearest resistance may be placed at 6,500 while immediate support may be drawn at the 6,200 area,” Timson’s Mr. Pangan said. — Revin Mikhael D. Ochave

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