PHILIPPINE shares rose back to the 7,000-territory on the PSEi as the second quarter economy and the gains carved by US markets encouraged investors to take positions on Thursday.
“The rebound of the market is a welcome relief amidst the uncertainties in the global markets. The second quarter growth numbers highlight the resilience of the economy despite the challenges abroad, and we hope that investors continue to look at the Philippines as a viable investment,” PSE Chairman Jose T. Pardo said in a statement.
After three days of languishing below the 7,000-mark, the PSEi advanced by 2.25 percent or 154.17 points to 7,022.09, while the All Shares gains 1.91 percent or 74.93 points to 4,006.37.
Good global leads influenced the market, as well as the 5.6-percent growth of the gross domestic product (GDP) in the second quarter, Miguel Agarao, investment analyst at Wealth Securities Inc., said.
“The market shared the bullish sentiment in the US. The GDP was also a tad below forecast, with the data pointing towards stronger growth in the second half of 2015. The strength in Asian indices today also contributed to the PSEi closing above 7,000,” Agarao said.
Overnight on Wall Street, the Dow Jones Industrial Average registered a 619.07-point or 3.95-percent increase to 16,285.51, while the S&P 500 jumped 72.9 points or 3.9 percent to 1,940.51, and the Nasdaq advanced by 191.05 points or 4.24 percent to 4,697.54.
Alexander Adrian Tiu, equity analyst at AB Capital Securities Inc., noted that the GDP growth reflects a safe number as people were expecting even lower results.
“The market was up on higher second quarter GDP growth, versus the first quarter, as people were expecting a lower GDP following the downgrade in first quarter,” Tiu noted.
“The prospects remain positive but we may hit a technical resistance at 7,200,” he added.
The sectoral indices were in the green on Thursday, led by the industrial and services sectors that gained 2.65 percent and 2.15 percent, respectively.
Over 2.466 billion shares amounting to P14.586 billion were traded. Advancers led decliners 139 to 45, with 34 issues unchanged.