GDP report props up share prices

MANILA, Philippines - Share prices were slightly up yesterday as the country’s economic growth for 2016 came out within market expectations.

The benchmark Philippine Stock Exchange index (PSEi) gained 9.28 points, or 0.13 percent, to finish at 7,332.64 while the broader All-Shares index gained 4.16 points, or 0.09 percent, to settle at 4,410.89.

The sectoral counters came out a mixed bag but most closed in negative territory led by the industrial, property, services and mining and oil sectors.

Total volume turnover reached P7.02 billion as advancing stocks outnumbered decliners, 95 to 84 while 50 stocks were left unchanged.

The economy expanded 6.8 percent in 2016, the fastest in the region and within the government’s full year target of six to seven percent.

“Markets traded rather flat as the GDP came out within expectations this morning,” said Luis Limlingan, managing director at Regina Capital.

He said there was some slight bargain hunting mainly owing to the fact that the US stocks recorded a trifecta of all-time highs on Wednesday: the Dow gained 155.12 points, or 0.8 percent, to 20,067.90 while the S&P 500  climbed 18.28 points, or 0.8 percent, to 2,298.35, and the Nasdaq Composite Index advanced 55.38 points, or one percent, to 5,656.34. 

“In addition, gold futures fell Wednesday to settle at their lowest level in nearly two weeks as a rally in the US stock market dulled investment demand for the precious metal,” he said.