PSEi bounces back to 7,000 on Q3 GDP

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It was a buyers’ market on Thursday as the third-quarter economic growth beat expectations and pushed the benchmark PSEi back in the 7,000 level after some companies reported disappointing financial results.

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“It’s basically a reaction to the third-quarter GDP results. This is a welcome development following dismal third quarter earnings results of some of the major companies,” Lexter Azurin of Unicapital Securities Inc. said in a text message.

The PSEi rose by 1.20 percent or 83.84 points to 7,050.12, while the All Shares increased by 0.74 percent or 30.95 points to 4,242.40.

“Markets cheered as the third quarter GDP recorded 7.1 percent on better agricultural, construction and consumption output,” said Luis Limlingan, Business Development head at Regina Capital Development Corp.

“In addition, US business prices held steady in October. The producer-price index for final demand printed unchanged, while year on year producer prices rose 0.8 percent—the strongest annualized gain since December 2014,” Limlingan added.

But share prices are expensive at current levels, which may determine how the market will go in the near-term.
“Current valuations are still elevated and we’re still at a premium to the region so I think trading may continue to be quiet in the next few days,” Azurin said.

All sectors were in the green, led by Property (up 2.02 percent) and Industrial (up 1.42 percent).

Among the heavily traded shares, SM Prime Holdings Inc., Ayala Land Inc., and Universal Robina Corp.
registered gains. Bloomberry Resorts Corp., Security Bank Corp., and Globe Telecom Inc. closed in the red.
Over 2.72 billion shares were traded, amounting to P8.14 billion. Gainers outpaced losers, 91 to 78, while 53 issues trade unchanged.

On Wednesday, the PSEi gained 109.13 points or 1.59 percent to 6,966.28, while the All Shares added 48.12 points or 1.16 percent to 4,211.45.

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