Local shares rise as GDP data boost sentiment
STOCKS rose on Tuesday as the country recorded a strong gross domestic product (GDP) growth in the first half and amid good second-quarter reports of listed companies.
The 30-member Philippine Stock Exchange index (PSEi) went up by 34.73 points or 0.54% to close at 6,468.97 on Tuesday, while the broader all shares index increased by 7.71 points or 0.22% to 3,456.44.
“Market [finished] higher on optimism about growth prospects toward second half of 2022 given strong first half GDP average growth of 7.8%, on track with government’s 6.5-7.5% target forecast this year,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.
“This was also helped by strong corporate earnings that mostly “beat” and “in line” with consensus estimates,” Ms. Ulang added.
“Philippine shares climbed in the afternoon session on heavy trading as investors welcomed the second-quarter GDP figure,” Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said in a Viber message.
Preliminary data released by the Philippine Statistics Authority on Tuesday showed GDP grew by 7.4% year on year in the April to June period, easing from the downward-revised 8.2% reading for the first quarter and the 12.1% expansion in the same period in 2021.
This brought the first semester average to 7.8%, faster than the 3.9% growth seen in the same period last year and well above the government’s 6.5-7.5% target for the year.
Socioeconomic Planning Secretary Arsenio M. Balisacan on Tuesday said he is confident the economy can expand by 5.3% to 7.2% in the second half to reach the government’s GDP growth target.
The majority of sectoral indices ended in the red on Tuesday except for property, which rose by 67.98 points or 2.39% to 2,904.96, and holding firms, which went up by 73.94 points or 1.21% to 6,179.80.
Meanwhile, financials declined by 17.60 points or 1.14% to 1,519.91; services dropped by 6.81 points or 0.40% to 1,681.54; industrials went down by 17.59 points or 0.18% to 9,667.45; and mining and oil lost 10.62 points or 0.09% to end at 11,226.80.
Advancers outnumbered decliners, 112 versus 82, while 42 names closed unchanged.
Value turnover jumped to P12.19 billion on Tuesday with 965.57 million shares changing hands from P7.91 billion with 591.40 million issues seen the previous trading day.
Foreigners turned sellers anew with P5.64 billion in net selling on Tuesday versus the P518.79 million in net buying seen the previous trading day.
Timson Securities’ Mr. Lood said local investors will be monitoring the July US consumer price index data due to be released on Wednesday. He placed PSEi’s support at 5,900 level and resistance at the 6,800 area.
Meanwhile, First Metro Investment’s Ms. Ulang placed the index’s support at the 6,300 level and resistance at 6,500. — J.I.D. Tabile
