Market recovers over Q1 GDP euphoria

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The euphoria over the country’s first-quarter 7.7-percent gross domestic product (GDP) growth was felt on Friday at the local stock market, which brought back the benchmark index to the 7,000-point level.

“Basically after the continued sell off this morning, some investors were able to digest already the implications in the GDP growth, and then it gave them confidence to buy again in the market,” Astro del Castillo, First Grade Finance managing director, said.

He said, however, that the market was still in a consolidation mode with decliners overshadowing advancers.

On Friday, the Philippine Stock Exchange index (PSEi) recovered from its Thursday slump, rising 0.99 percent, or 68 points to 7,021.95, which contrasted the fall of the wider all-shares index by 0.14 percent, or 6.15 points to 4,292.03.


Majority of the sectoral indices also recovered, with only two remaining on the red side.

Financials regained 30.85 points, or 1.75 percent to close at 1,797.01, followed by the industrial counter, which improved 82.87 points, or 0.79 percent to 10,611.17.

The property counter advanced 21.31 points, or 0.74 percent to 2,885.89, while services went up 0.60 percent, or 12.24 points to 2,062.53.

Mining and oil, on the other hand, lost 91.86 points, or 0.53 percent to 17,280.13, while holding firms declined 0.44 percent, or 27.62 points to 6,218.63.

Total value turnover surged P85.25 billion driven by the announcement of Cosco Capital Inc. of a billion-peso share placement also on Friday.

Advancers stood at 66 and were outnumbered by decliners, 89, while 48 issues were unchanged.

Amid the country’s 7.8-percent GDP growth announcement, the PSEi collapsed below the 7,000-point mark on Thursday as sentiments caused by downbeat overseas markets got the better of investors.

The PSEi subsided by 275.22 points to end at 6,953.35, or 3.81 percent on Thursday, while the wider all-shares index fell hard by 133.99 points to 4,298.18, or a slump by 3.02 percent.

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