The result of country’s economic growth during the third quarter of the year made significant impact on the local equity market on Thursday, even pushing back the benchmark index to the 6,100-point level.
The domestic economy kept its growth trajectory during the third quarter with the gross domestic product (GDP) growing by 7 percent, way above the government’s estimate of between 6.2 percent and 6.7 percent.
Jun Calaycay, Accord Capital Equities Corp. analyst, explained that the GDP growth in the third quarter was led by real estate, renting and business activities, trade and financial intermediation on the supply side. On the demand side, the major movers include fixed-capital investments and external trade, supported by a sustained rise in government and consumer spending.
The latest GDP growth figures made a direct impact on the country’s stock market, pushing the Philippine Stock Exchange index (PSEi) to turn even more buoyant on Thursday, rising by 1.12 percent, or 116.09 points to 6,169.96. The wider all-shares index also went up, gaining 1.39 percent, or 51.43 points to 3,755.58.
“Confidence, though still evidently shaky, has crept back into the market strengthened even more by third-quarter GDP results. The domestic economy grew 7 percent in the July to September period, slower than previous quarters but keeping the trajectory and momentum intact,” Calaycay said.
Each of the sectoral indices also performed better, with mining and oil surging by 3.14 percent, or 374.30 points to 12,315.44, and property climbing by 2.60 percent, or 61.23 points to 2,416.45.
Meanwhile, industrial advanced by 1.97 percent, or 172.73 points to end at 8,957.15, and financials rose 1.64 percent, or 24.19 points to 1,500.13. Services followed with a 1.61-percent increase, or 29.99 points to 1,889.26, while holding firms went up by 1.32 percent, or 73.76 points to 5,647.71.
Total value turnover, however, was a bit lower at P6.8 billion, while advancers beat decliners, 98 to 53.
Some of the top gainers on Thursday were Philippine Long Distance Telephone Co., SM Prime Holdings Inc., SM Investments Corp., JG Summit Holdings Inc., Metropolitan Bank and Trust Co., Universal Robina Corp., Megaworld Corp., Ayala Land Inc., BDO Unibank Inc., Jollibee Foods Corp., Ayala Corp. and DMCI Holdings Inc.
PSEi extended its rise on Wednesday, inching up by 0.47 percent, or 28.50 points to end at 6,053.87, while the wider all-shares index recovered by 0.67 percent, or 24.58 points to 3,704.15.