Stocks track Wall Street rally before GDP report
PHILIPPINE SHARES rose on Wednesday to track Wall Street’s increase and as investors stayed on the sidelines ahead of the release of third-quarter gross domestic product (GDP) data.
The Philippine Stock Exchange index (PSEi) went up by 23.71 points or 0.38% to close at 6,155.03 on Wednesday, while the broader all shares index rose by 7.17 points or 0.21% to end at 3,317.51.
“Philippine equities rose along with US markets, with the S&P 500 and Nasdaq Composite notching their longest winning streaks in about two years,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Stocks on Wall Street surged as investors assessed US Federal Reserve commentary about a too-strong US economy that could require another interest rate hike to tame inflation, Reuters reported.
Fed Governor Christopher Waller said “blowout” third-quarter US economic growth at an annualized 4.9% rate warrants watching as the US central bank considers its next policy moves, leading a colleague to explicitly call for another hike.
Fed Governor Michelle Bowman said she took the recent GDP number as evidence the US economy not only “remained strong,” but may have gained speed and require a higher Fed policy rate.
The Nasdaq Composite advanced 0.9%; the S&P 500 gained 0.28%; and the Dow Jones Industrial Average rose 0.17%.
“Shares on the Philippine Stock Exchange were bought up at the close, following a positive session on Wall Street overnight, as investors tried to figure out the Federal Reserve’s and the Philippine central bank’s interest rate plans, as well as digest a fresh slew of corporate earnings,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
Mr. Arce said investors are awaiting the release of Philippine third quarter GDP data on Thursday.
A BusinessWorld poll of 17 economists and analysts last week yielded a median estimate of 4.9% for third-quarter GDP growth, faster than the preliminary 4.3% expansion seen in the preceding three-month period.
If realized, this would bring the nine-month GDP growth average to 5.2%, still below the government’s 6-7% full-year target.
Sectoral indices were split on Wednesday. Industrials climbed by 90.09 points or 1.04% to 8,679.84; property went up by 26.50 points or 1.02% to 2,617.21; and financials rose by 10.99 points or 0.62% to 1,773.61.
Meanwhile, mining and oil fell by 72.13 points or 0.72% to 9,824.74; holding firms lost 16.77 points or 0.28% to 5,849.23; and services dropped by 4.26 points or 0.28% to 1,491.57.
Value turnover went up to P3.76 billion on Wednesday with 341.53 million shares changing hands from the P2.99 billion with 240.17 million issues seen on Tuesday.
Advancers outnumbered decliners, 90 versus 75, while 51 shares closed unchanged.
Net foreign buying went up to P98.33 million on Wednesday from P52.11 million recorded on Tuesday. — S.J. Talavera with Reuters
