Index hits fresh 14-month high

MANILA, Philippines - With market confidence boosted by expectations of an improved gross domestic product (GDP) outcome in the second quarter, the benchmark stock index rose anew to its highest in 14 months. 

The Philippine Stock Exchange index went up 0.79 percent or 55.17 points to 7,082.75 yesterday, its best finish since ending at 7,228.57 on May 29, 2013. The broader All Shares index climbed 0.62 percent or 25.91 points to 4,197.63.

With the country’s GDP expected to accelerate in the second quarter after a disappointing first quarter, First Grade Finance Inc. managing director Astro del Castillo said this provided the impetus to bullish market sentiment.

The GDP results for the second quarter will be released next week.

“Investors continue to flock the market given the string of good news, starting with the positive economic housing data on the US. Any good news from the US will affect us,” Castillo added.

“Locally, the statement on the fast growth of the economy fared well with investors. It generated confidence among local investors,” he said.

US stocks gained on Monday due to the positive housing data, while Asian stocks rose yesterday after Wall St. climbed to its highest level since late July.

In the local market, all counters were in the green, with mining and oil firms posting the highest growth at 1.17 percent.

Advancers edged out decliners 100 to 81, while 41 issues were unchanged. Turnover value hit P13.26 billion from Monday’s P8.25 billion.