The stock market recovered yesterday on the back of better-than-expected performance of the economy in the third quarter. File photo
MANILA, Philippines – The stock market recovered yesterday on the back of better-than-expected performance of the economy in the third quarter.
The benchmark Philippine Stock Exchange index (PSEi) gained 83.84 points or 1.20 percent to finish at 7,050.12, while the broader All Shares index edged higher by 30.95 points or 0.73 percent to close at 4,242.40.
All counters closed in positive territory led by the property sector which rose 2.01 percent.
Total value turnover reached P8.14 billion as advancing stocks outnumbered decliners, 91 to 78. Fifty three stocks were left unchanged.
Analysts said the market reacted positively to the strong gross domestic product (GDP) growth for the quarter.
Socioeconomic Planning director Reynaldo Cancio yesterday said the economy grew strongly by 7.1 percent in the third quarter.
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“This cements our chance of achieving our target of six to seven percent for the whole of 2016. This growth is above the median market expectation of 6.8 percent. And we are the fastest-growing among major Asian emerging economies that have already released data for the quarter,” Cancio said.
The Philippine economy’s growth is higher than China’s 6.7 percent, Vietnam’s 6.4 percent, Indonesia’s five percent, and Malaysia’s 4.3 percent. India’s has not yet released their data. For the fourth quarter, the country only needs to attain at least 3.4 percent growth to attain the low-end target of six percent.
“To reach the high-end target of seven percent, we need to grow by 6.9 percent in the fourth quarter,” Cancio said.
