Surprisingly strong economic growth results failed to excite investors on Thursday with the stock market closing just short of falling into 8,100 territory.
The benchmark Philippine Stock Exchange index (PSEi) declined by nearly 1 percent or 67 points, ending the day 8,206.44. The wider All Shares also lost 29.47 points or 0.61 percent to close at 4,834.68.
“[B]etter-than-expected GDP (gross domestic product) growth … was not enough as stocks still fell,” Regina Capital Development Corp. said.
The government on Thursday announced that the economy had grown by 6.9 percent in the third quarter, beating expectations of an expansion of not more than 6.6 percent, on the back of improved exports and state spending.
While the GDP growth was down from 7.1 percent a year earlier, it also put the country on track to meeting this year’s 6.5-7.5 percent growth target.
The PSEi, which earlier this month hit fresh all-time highs above 8,500, had dipped to the 8,200 level on Thursday with investors said to have been reacting to weaker overseas Filipino worker remittances.
An upward revision to second quarter GDP growth, to 6.7 percent from 6.5 percent, was also said to have raised worries ahead of the release of third quarter figures.
While investors should have been heartened by the 6.9 percent result, Regina Capital said they apparently gave more importance to developments in the United States.
“This was because US stocks dropped last night as falling oil prices and worries over the progress of a US tax overhaul left investors increasingly averse to putting more money into assets perceived as risky, including equities,” the brokerage firm explained.
All sectors ended the day in the red except financials, which gained by 0.57 percent.
Over 807 million shares valued at P7.9 billion changed hands.
Decliners outnumbered advancers, 122-74, while 38 issues remain unchanged.