Index gains anew on strong regional markets

MANILA, Philippines - Share prices continued to recover yesterday, tracking the movement of markets in the region.

Investors are also optimistic second quarter gross domestic product could come in higher than the first quarter’s 5.2 percent growth, but will continue to take a cautious stance ahead of second quarter earnings reports to be released in the next two weeks.

The Philippine Stock Exchange index (PSEi) gained 27.56 points, or 0.36 percent, to close at 7,510.39, while the broader All Shares index closed 13.69 points higher at 4,308.88.

Similarly, the Financials index settled at 1,661.11, up 3.71 points, or 0.22 percent, while the Holding Firms index gained 6.12 points, or 0.09 percent.

Analysts said while the economy likely rebounded in the second quarter of the year and growth could come in higher than the first quarter’s 5.2 percent, volatility in the stock market may continue for the remainder of the year on the back of concerns over the domestic economy, corporate earnings and the US Federal Reserve’s rate hike.

“We maintain our view that market volatility will persist for the remainder of the year. We see the market,” according to First Metro Investments Corp. (FMIC)-University of Asia & Pacific (UA&P) Capital Markets Research.