The benchmark Philippine Stock Exchange index (PSEi) gained 6.62 points or 0.08 percent to settle at 7,952.81, while the broader All Shares index edged higher by 10.47 points or 0.22 percent to end at 4,707.58. STAR/File photo
MANILA, Philippines – The stock market posted modest gains yesterday on the back of strong second quarter economic growth of seven percent.
The benchmark Philippine Stock Exchange index (PSEi) gained 6.62 points or 0.08 percent to settle at 7,952.81, while the broader All Shares index edged higher by 10.47 points or 0.22 percent to end at 4,707.58.
“The growth is within market expectations given average consensus forecast of 6.1 to 7.2 percent for the second quarter. This strong growth increases the probability of attaining the revised full-year 2016 DBCC-approved real growth projection of six to seven percent. With the first semester GDP growth of 6.9-percent, the economy will need to grow by at least 5.1 percent in the second half to attain at least the low-end of the growth target,” said Socioeconomic Planning Secretary Ernesto Pernia.
He said among the major Asian emerging economies, the Philippines remains the fastest or second fastest-growing economy in the second quarter, followed by China, which grew 6.7 percent; Vietnam, 5.6 percent, Indonesia, 5.2 percent; Malaysia, four percent; and Thailand 3.5 percent.
JP Morgan regional analyst Nur Rasid said the growth narrative of the Philippines is likely to remain positive.
“Domestic demand will likely remain robust due to investment growth which could further lower external balances,” Rasid said.
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Most sectoral indices ended in positive territory with the mining and oil posting a strong recovery from Wednesday’s close as it gained 225.48 points or 2.22 percent.
