Local Stock Market Soars as Investors React to Positive Third Quarter Economic Growth Report
The local stock market saw a significant rise as investors welcomed the positive report of the nation’s third-quarter economic growth. The main index went up by 33.19 points or 0.54 percent, closing at 6,188.22, with only All Shares, Holding Firms, and Property sectors in the green.
Volume of shares traded amounted to 419 million worth P4.6 billion, with losers outpacing gainers 96 to 85, and 46 remaining unchanged. Philstocks Financial Research and Engagement Officer Mikhail Plopenio stated, “Investors cheered the Philippine economy for the third quarter, which expanded by 5.9 percent, higher than last quarter’s 4.3 percent growth.”
Plopenio added, “Positive sentiment, already backed by the decline in our inflation last October and the strengthening of our local currency, received a further boost from the latest GDP print.” He also mentioned that concerns over the ongoing conflict in the Middle East are keeping many on the sidelines, resulting in weak market participation with a net value turnover of P3.32 billion, lower than the year-to-date average of P4.99 billion.
China Bank Capital Corp. Managing Director Juan Paolo Colet said that “traders reacted to the stronger than expected Philippine third quarter GDP print,” while “sustained net foreign buying also helped push prices higher.” Regina Capital Development Corporation Managing Director Luis Limlingan shared that “Philippine shares tested the 6,200 level with the third quarter GDP coming in much higher than many analysts’ expectations, while others looked ahead to upcoming commentary from US Federal Reserve Chair Jerome Powell.”
Limlingan also noted, “The local bourse was also lifted by the lower unemployment data. As per PSA’s report, the September 2023 unemployment rate declined to 4.5 percent from the 5 percent rate a year ago.”