Share prices on Thursday shrugged off data showing the Philippine economys second-quarter growth topped estimates with the composite index tumbling to just a shade above the 7,100-mark. At the Philippine Stock Exchange, the benchmark index fell 59.76 points, or 0.83 percent, to close at 7,100.70. Except for the mining and oil index, the other counters finished in the red with the property sector leading the way with losses of 1.44 percent. Decliners beat advancers, 111 to 71, while 47 issues were unchanged. Value turnover slipped to P10.43 billion from yesterday’s P10.92 billion, as 1.37 billion shares changed hands. Most actively traded stocks were PLDT, BDO, Metrobank, Alliance Global and Ayala Land. Trans-Asia Petroleum shares, which listed by way of introduction today, surged 60.87 percent to P7.40 apiece on its market debut. The unit of Trans-Asia Oil and Development Corp was joined by Island Information and Imperial Resources A as the days top gainers. The biggest losers were Swift Foods, iRipple and Filipino Fund. I think the stronger GDP has been factored in already. The stocks turned lower even as GDP slightly beat estimates. Its a buy on speculation, sell on news type of market considering the market has been expensive, said Luis Limlingan, head of business development at Regina Capital Development Corp. The PSE index became vulnerable to profit-taking after a six-day winning streak fuelled by bets of faster economic growth in the April to June period. The Philippine Statistics Authority today reported that the countrys gross domestic product grew at a faster 6.4 percent in the second quarter compared to the revised 5.6 percent expansion in the first three months of the year. While the GDP data beat the consensus estimate of 6.1-6.2 percent, investors would have reacted positively if the figure was closer to the 7-percent mark, Limlingan added. Its a reality check for investors. Moving forward, it seems like the economys momentum has been put into question in the face of power/energy crisis and water shortage. The question of sustainability is haunting some investors, said Astro del Castillo, managing director of First Grade Finance Inc. The government target [for the entire 2014] is between 6.5-7.5 percent. We have to pick up the slack. The Philippines has to make up for the lost ground in the first half, Limlingan said. The market took its cue from the overnight movement of US stocks, which were hardly changed after their recent ascent to uncharted territory. The Standard & Poors 500 index rose less than a point to 2,000.12, closing at a record above the 2,000 line for a second day. The Dow Jones Industrial Average added less than 0.1 percent to 17,122.01.
Posted on: Fri, 29 Aug 2014 01:40:58 +0000
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