The 7.5-percent second-quarter growth of the world’s second-largest economy lifted many regional stock markets including the local bourse, even if the latest figure showed a weaker quarter-on-quarter growth for China.
“The PSEi [Philippine Stock Exchange index] extended gains to a fourth session on the back of a general rise among Asian equities after China’s second-quarter GDP [gross domestic product], which albeit slower, was in line with market expectations,” Jun Calaycay of Accord Capital Equities Corp. said.
China’s economy grew by 7.5 percent in the second quarter of the year, which is slightly lower than the 7.7-percent growth posted during the first three months of the year.
“In its place, we find a fresh wave of inspiring numbers—including the latest GDP numbers from China which, albeit confirming a slower growth pace in the world’s second-largest economy, nonetheless is in line with what markets expected—the only thing the markets really hate, to which it reacts with wild swings are surprises,” Calaycay further said.
He also said that given the external background, the markets should start to become more consistent in trading positively.
On Monday, the benchmark index went 0.70 percent, or 45.74 percent toward 6,619.95, while the wider all-shares index greeted the week with a 0.63-percent increase, or 25.33 points to 4,051.02.
All sectors posted advances except for financials, which slid 0.82 percent.
Conglomerates or holding firms led with a 1.43-percent improvement, and were joined by the mining and oil, and property sectors in registering more than 1 percent jumps. The rest of the sectors registered less than 1 percent advances.
Gross value turnover managed to rise over P6 billion with advancers edging decliners, 86 to 65.
“We see value turnover in the local market stabilizing—an indication that at the very least, selling pressure had dissipated enough to push the PSEi higher and putting a ‘safe’ distance from the line that defines a technically bearish market,” Calaycay said.
“Succeeding attempts may not be as unsuccessful with expectations primed for a possible return to the 6,800 to 6,900 levels before earnings roll,” he added.
Some of the actively traded stocks were Ayala Corp., Aboitiz Equity Ventures Inc., Alliance Global Group Inc., Ayala Land Inc., Aboitiz Power Corp., BDO Unibank Inc., Belle Corp., Bloomberry Resorts Corp. and Bank of the Philippine Islands.