Earnings, GDP optimism boost stocks

MANILA, Philippines - Share prices continued to rally yesterday on optimism of rosy third quarter corporate results and gross domestic product data.

The benchmark Philippine Stock Exchange index (PSEi) rose 88.02 points, or 1.21 percent, to 7,324.40, while the broader All Shares index gained 42.51 points, or 1.02 percent to settle at 4,203.15.

Value turnover rose to P8.394 billion. Advancers outnumbered decliners 116 to 70, while 32 stocks were left unchanged.

Commenting on yesterday’s trading session, Justino Calaycay of Accord Capital said the momentum of Friday’s surge manifested in early trading across the Asia and the Oceania region as a new week opened.

“Buoyed by expectations of at least the status quo in major central banks’ monetary stance, investors continue to fatten their equity portfolio ahead of a US Federal Reserve meeting, month-end window-dressing and third quarter data both for the broad domestic economy and listed companies,” he said.

He said yesterday’s action finally closed the August 24th gap and put the main Philippine shares benchmark 7.85 percent above the lowest point since the August 24th drop on the yuan devaluation. Today’s value turnover is at least 30 percent more than the five and 20 period averages.

Throughout he region, he said Asian markets were generally upbeat except for a few.

These include shares in Australia and New Zealand whose losses were however marginal – can be considered flat. The Hang Seng in Hong Kong dropped 0.28 percent but mainland shares were performing well with the Shanghai Composite edging higher by 17.15 points or 0.50 percent.