PHILIPPINE SHARES extended their rally on Wednesday as investors decided to buy before the government released the second-quarter gross domestic product (GDP) report.
The benchmark Philippine Stock Exchange index (PSEi) increased 58.08 points or 1% to 5,833.58 on Wednesday. The broader all shares index added 29.32 points or 0.85% to 3,456.29.
“Local shares closed higher as investors bought ahead of the second-quarter GDP release,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The Philippine Statistics Authority is scheduled to release the second-quarter GDP data on Thursday, which majority are expecting to show the deepest economic contraction as most of the country was under strict lockdown in the period.
A BusinessWorld poll of 17 economists showed a median GDP contraction of 11%, deeper than the downward-revised 0.7% recorded in the first quarter.
While others chose to buy ahead of the data report, some investors started selling their shares at the last minute on Wednesday, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
“We saw selling pressure pick up towards the close as investors remain cautious ahead of the second-quarter GDP report,” he said.
The robust activity at the earlier part of trading can be linked to confidence in business resilience despite the stricter quarantine measures, Mr. Mangun said.
“Most businesses remain operational amid the lockdown. Public transport has been limited to inhibit non-essential travel, but essential goods and businesses remain functional,” Mr. Mangun said.
Metro Manila and key urban provinces are under strict quarantine measures again for two weeks to help stem rising coronavirus infections.
All sectoral indices ended Wednesday’s session higher than the previous day’s levels: mining and oil by 185.73 points or 3.31% to 5,786.63; financials by 28.87 points or 2.6% to 1,138.67; property by 34.52 points or 1.23% to 2,827.19; services by 15.53 points or 1.13% to 1,384.50; industrials by 60.21 points or 0.8% to 7,534.15; and holding firms by 8.66 points or 0.14% to 5,980.76.
Value turnover slid to P5.38 billion with 2.04 billion issues switching hands from Tuesday’s P5.74 billion, which Philstocks Financial, Inc. Research Associate Claire T. Alviar said is an indication the current rally may be unsustainable.
Advancers outpaced decliners, 128 against 75, while 27 names ended unchanged.
Net foreign selling dropped to P257.50 million on Wednesday from the P837.17 million logged on Tuesday.
Meanwhile, Wall Street ended higher after a choppy session on Tuesday, lifted by Apple and energy stocks but limited by declines in AIG and Microsoft while investors awaited more US government stimulus to fight the economic fallout from the COVID-19 pandemic. — Denise A. Valdez