Stocks rise despite GDP contraction

The local stock market yesterday continued to regain lost ground as the announced economic recession was already expected. 

The main index rose 69.00 points or 1.18 percent to close at 5,902.58 with only the Mining and Oil sector in the red. 

Volume improved to 7.27 billion shares worth P6.53 billion although losers edged out gainers 90 to 88 with 46 steady. 

“Local shares extended gains despite the lower than expected second quarter GDP reading, as investors accepted the weakness in the economy and looked ahead to the coming quarters,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

AAA Equities Head of Research Chris Mangun noted that, “Although analysts were expecting a contraction, current data exceeded most estimates. The economic recovery that we saw June was not as strong as most were expecting. The market moved slightly lower for most of the trading day and then it jumped right at the close to end at its high for the day.”