Investors pre-position ahead of Q2 GDP results

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    Share prices ended higher Wednesday as investors took to bargain hunting ahead of the release of the second quarter national income accounts Thursday.

    The Philippine Stock Exchange index (PSEi) was up 58.08 points to 5,833.58, a 1 percent hike.

    The broader all shares index was up 29.32 points to 3,456.29, a 0.86 percent hike.

    Gainers edged losers 128 to 75 with 27 stocks unchanged. Trading turnover reached P5.38 billion.

    The peso closed at 49.075 to the dollar, up from 49.095 on Tuesday. It opened at 49.05 and hit a high of 49.01 and a low of 49.08. Trading turnover reached $699.1 million.

    Luis Limlingan, managing director at Regina Capital Development Corp., said investors positioned ahead of the release of the economy’s second quarter performance on Thursday.

    “Others weighed prospects for another government stimulus package to boost the US economy,”

    Limlingan noted that the latest Bloomberg consensus has pegged the second quarter GDP result to be a 9.4 percent contraction. The Philippine Statistics Authority on Wednesday revised downward the first quarter GDP results to a 0.7 percent contraction compared to an earlier 0.2 percent.

    Prior to the market’s opening, the PSA also reported that July inflation picked up by 2.7 percent.

    SB Equities noted that this “increases the probability that the Bangko Sentral ng Pilipinas (BSP) will again refrain from cutting its policy rate as real interest rates now at -0.45 percent.”

    “This expectation of steady rates will provide further support to the peso,” it said.
    Earlier in the day yesterday, it was announced that agricultural output improved to 0.5 percent.

    US-China relations also remained in focus after China vows retaliation if US persists on hostile action re Chinese journalists. The two countries will also hold high level trade talks on Aug 15th to assess China’s compliance.

    Most activel traded Ayala Land Inc. was up P0.30 to P32.50. SM Investments Corp. was up P5 to P870. BDO Unibank Inc. was up P3.85 to P91. PLDT Inc. was up P16 to P1,353. SM Prime Holdings Inc. was up P0.55 to P29. Alliance Global Group Inc. was down P0.09 to P5.60. Bank of the Philippine Islands was up P1 to P65.50.