PSEi, peso gain on strong Q3 GDP growth

The Philippine Stock Exchange index (PSEi) and the peso saw gains on Tuesday, boosted by a better-than-expected third-quarter Gross Domestic Product (GDP) report.

The PSEi closed at its highest point this year, gaining 0.61 percent or 45.45 points to reach 7,441.67 points.

The Philippine economy expanded by 7.1 percent in the third quarter, significantly exceeding the consensus forecast of 4.6% and was among the fastest in the ASEAN region.

This GDP growth, averaging 4.9% for the first three quarters, is near the upper end of the target range of 4% to 5% for the year.

The peso strengthened against the US dollar, closing at 50.09 from 50.16 the previous day.

Investor sentiment was positively influenced by the strong GDP figures, leading to robust net foreign buying.

While the third-quarter GDP growth was slower than the second quarter's upward-revised 12% expansion, it still represents a strong recovery from last year's 11.6% contraction.