Philippine share prices jumped in early trade and closed higher after data on the US economy showed stronger-than-expected growth in the second quarter, fueling confidence for sustained recovery in a major global market despite the headwinds.
Faster second-quarter growth in the Philippine economy, however, provided little comfort to local traders because it hit the low end of economists’ forecast range.
The Philippine Stock Exchange index (PSEi) finished Friday’s trade up 1.09 percent, or 76.72 points, at 7,098.81. The rise slowed from Thursday’s 2.25 percent surge.
The All Shares index climbed 1.24 percent or 49.71 points to 4,056.08.
A larger part of the solid gains came from holding companies, with their index up 1.89 percent, and property, up 1.59 percent.
“Local sentiment got another boost from a surge on Wall Street, especially with signs the US economy grew better than expected. The other catalyst is still on the possibility that the Fed rate hike move may be deferred” from an earlier date in September as the market had earlier speculated, F. Yap Securities Inc. investment analyst Jason Escartin said.
US gross domestic product grew at an annual rate of 3.7 percent in the second quarter, the Commerce Department said. The increase had been estimated at only 2.3 percent, after GDP firmed 0.6 percent in the first quarter.
On Thursday night, Wall Street advanced on optimism about the US economy, with the Dow Jones Industrial Average up 2.27 percent or 369.26 points at 16,654.77. The S&P 500 climbed 2.43 percent or 47.15 points to 1,987.66, and Nasdaq rose 2.45 percent or 115.17 points to 4,812.71.
In the Philippines, government data released Thursday showed second-quarter GDP expanded 5.6 percent, up from the first quarter’s 5.0 percent but down from the year-earlier 6.4 percent. The second-quarter performance also hit the low end of analysts’ forecast growth range of 5.6 percent to 6.8 percent.
Actively traded blue chips mostly advanced, led by Ayala Land Inc., which gained 3.3 percent of P1.15 to finish at P35.95; Globe Telecom, which rose P82 or 3.29 percent to
P2,576; and GT Capital, up P40 or 3.25 percent at P1,270.
Philippine Long Distance Telephone Company (PLDT) curbed the market’s gains with a P34 or 1.33 percent loss to end at P2,518.
Overall trade volume thinned to 1.47 billion shares from Thursday’s 2.466 billion, with value turnover down at P11.26 billion from P14.586.
Advancers outnumbered decliners 129 to 46, while 40 issues closed unchanged.
Trading on Monday will be suspended in celebration of Philippine National Heroes’ Day.