Stocks ignore lackluster GDP data, finish higher

MANILA, Philippines — The stock market seems to have already taken into account the lower than expected 2018 economic growth figures.

Thus, despite the lackluster gross domestic product performance of six percent for 2018 and 6.1 percent in the fourth quarter, the Philippine Stock Exchange index managed to finish in the green.

The PSEi gained 75.25 points, or 0.94 percent, to end at 8,064.90 while the broader All Shares gauge ended at 4,861.23, up 47.22 points or 0.98 percent.

Likewise, all the sectoral indices except for the mining and oil finished in positive territory. Big gainers were the financials and the services sectors.

Total value turnover reached P7.548 billion and market breadth was positive, 120 to 87 while 43 issues were unchanged.

“The Philippine economic growth remained stable as it grew 6.1 percent in the fourth quarter of 2018 from the revised six percent recorded in the third quarter. This steady performance—the seventh consecutive year that the Philippine economy sustained its growth of more than 6.0 percent—brings our 2018 full-year growth to 6.2 percent,” the National Economic and Development Authority said.

Gio Perez of Papa Securities said the PSEi managed to close in the green despite the lower than expected fourth quarter GDP figure of only 6.1 percent versus consensus expectations of 6.3 percent.

Net foreign buying was at P790 million and value turnover was also significant at P7.5 billion.