Stocks rise despite slash in GDP target


The local stock market managed to end higher even after posting losses early in the trading due to a downgrade in the country’s growth target by the government.

The main index advanced 38.33 points or 0.57 percent to close at 6,718.51 as Holding Firms continue lead forward with only the Financials and Mining and Oil counters in the red.

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Volume declined to 1.3 billion shares worth P5.28 billion as losers beat gainers 95 to 88 with 46 unchanged.

“Investors continued their focus on the Philippine for a fourth straight day as they digested the Fed's July Committee minutes that showed most officials support tapering the monthly asset purchases before year-end.”

He added that, “For today and tomorrow, those monitoring Philippine shares are awaiting the of the announcement of Metro Manila's new quarantine classification.”

Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse was lifted by net foreign buying of P725.08 million , bucking the performances of our regional peers.”

She noted that, “Investors booked gains earlier in the session as the Development Budget Coordination Committee revised downward its GDP growth target to 4-5 percent from 6-7 percent previously.”

Alviar added that, “negative sentiment from the performance of Wall Street stocks overnight spilled over.”

“Then at the last minute, foreigners helped the bourse to close in the green,” she said.