PSEi modestly up after GDP report

The local stock barometer slightly gained on Thursday as the country’s fourth-quarter economic growth rate came in right within market consensus at 6.6 percent.

The main-share Philippine Stock Exchange index added 9.28 points or 0.13 percent to close at 7,332.64. Elsewhere in the region, stocks were mostly higher as investors took their cue from the Dow Jones Industrial Index which breached the 20,000-mark for the first time.

“Markets traded rather flat as the GDP (gross domestic product) came out within expectations this morning. Some slight bargain hunting was observed mainly owing to the fact that U.S. stocks recorded a trifecta of all-time highs on Wednesday: the Dow gained 155.12 points, or 0.8 percent, to 20,067.90, 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 1 percent, to 5,656.34,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.

“In addition, gold futures fell Wednesday to settle at their lowest level in nearly two weeks as a rally in the U.S. stock market dulled investment demand for the precious metal. Also markets are waiting as both UK and US GDP will be reported later tonight and tomorrow night, respectively,” he said.

The day’s gain was led by the financial counter which rose by 1 percent. The holding firm counter was modestly higher.

On the other hand, the industrial, services, mining/oil and property counters all dipped.

Value turnover for the day amounted to P7.02 billion. There were 95 advancers that outnumbered 84 decliners while 50 stocks were unchanged.

BDO led the PSEi higher with its 2.68 percent gain after completing a P60-billion fresh recapitalization programm.

LTG rose by 2.26 percent, benefiting from the authorities’ crackdown on illicit cigarette trading allegedly perpetrated by its key rival, Mighty Corp.

GT Capital went up by 1.72 percent while ICTSI, BPI, JG Summit, Semirara and AEV all firmed up.

Outside the PSEi, notable gainers included Suntrust (+10.87 percent) and Puregold (+5.36 percent).

On the other hand, PLDT fell by 1.95 percent while SM Prime, Jollibee, URC, SM Investments, Ayala Corp. and Metrobank all slipped.