The Philippine Stock Exchange Index (PSEi) started the first trading day of August on a strong note, gaining 28.29 points or 0.83 percent. This came despite the disappointing Gross Domestic Product (GDP) data of the United States released last friday.
The rally was across the board with all sub-indexes ending in positive territory. Banking and the Industrial sub-index performed best, rising 2.04 percent.
There were 679 million of shares worth P2.8 billion traded. Advancers trounced the decliners 98 to 65 with only 28 shares remaining unchanged.
With the rally, it affirmed the statements of Citiseconline that local market can close the year near the record highs because of strong fundamentals and the optimism a change in administration brings. President Conrado Bate said that the index may even breach the 3,800-level if the present administration shows that it can halt the steady decline in tax efficiency.
April Lee-Tan, CitisecOnline head of research, said the Philippine economy is “well positioned for growth with rising gross national product per capita attributed to the strong growth in overseas Filipino workers remittances and the business process outsourcing industry and numerous investment opportunities available.”
The index has actually reached the 3,800-level and came close to breaching the level but it was because of the technical glitches brought about by the change of the trading system, which was implemented by the PSE last Monday.
Asian markets also rallied
Asian markets also shrugged off the U.S.’s disappointing GDP data and China’s slowing down manufacturing output and instead focused on the robust corporate earnings.
Japan’s Nikkei 225 gained 0.35 points but pared earlier gains. Hong Kong’s Hang Seng Index did much better, rising 1.82 percent because of strong optimism on strong earnings of HSBC Holdings. It was the highest level Hong Kong’s stock reached in three months. China’s Shanghai Composite Index rose 1.33 percent.
Among the companies that reported earnings were Japan’s Honda Motors and Nippon Airways; and Korea’s Hyundai and Kia Motors.