Philippine share prices soared Thursday, recovering losses in previous sessions, as the market cheered the stronger-than-expected gross domestic product (GDP) in the second quarter amid a rebound in regional markets.
The main PSEi surged by 206.15 points or 3.59 percent to 5,944.21 at the close. The broader all-shares index jumped 113.53 points or 3.23 percent to 3,629.08.
"Sustained robust economic growth, an overnight decent rise in US equities and technically oversold market conditions lent a positive bias to Thursday’s trades," Justino B. Calaycay, Jr., analyst at Accord Capital Securities Inc., noted in his daily report.
"The sentiment was sustained through the afternoon session, the pace stable and more points added to the day’s gains to erase previous session’s losses," he added.
Thursday morning, the National Statistical Coordination Board announced that the economy grew by 7.5 percent in the second quarter, from a revised 7.7 percent in the first quarter and from a revised 6.3 percent a year earlier, faster than Asian neighbors and on a par with China. http://www.gmanetwork.com/news/story/324083/economy/business/phl-economy-grows-7-5-percent-in-q2-faster-than-asian-neighbors
BDO Capital & Investments Corp. president Eduardo Francisco lauded the growth but warned that the strength of the country "might get overshadowed by European and US developments.
"Our companies are resilient but you saw our valuations got hit even if our revenues and income continue to improve," he said.
Bede Lovell Gomez, First Metro Investments Corp. assistant vice president and deputy group head of investment advisory, did not discount the fact that Philippine shares were on track with overseas developments.
"With the impending tapering of the Federal Reserve, we could see some selling pressure in the short term but we are still confident the index will go back to the 6,800 level by year-end," he said.
Asian shares recouped some of the two previous sessions' steep losses as fears abated from a US-led military strike on Syria, and oil prices retreated from a six-month peak, Reuters reported.
In the past two sessions, the main index plunged by 423.15 points or 6.88 percent, wiping out year-to-date gains on concerns over US monetary policy and the rising tensions in Syria.
"From being the worst performing market in the last two days, the PSEi emerged with top billing in the region today," Calaycay noted.
All sub-sectors were in positive territory led by property which surged by 4.64 percent, followed by holding firms which rose by 4.54 percent.
Financials climbed 4.35 percent, industrial jumped by 3.10 percent, services increased by 2.68 percent and mining and oil was higher by 0.94 percent.
More than 1.3 billion shares valued at P9.697 billion were traded. Advancers outnumbered decliners 117 to 38 while 34 issues were unchanged. — VS, GMA News