Shares end flat ahead of economic growth data
By Denise A. Valdez, Reporter
LOCAL SHARES ended flat on Wednesday as investors decided to wait it out until the release of the gross domestic product (GDP) data for the fourth quarter of 2019 on Thursday.
The Philippine Stock Exchange index (PSEi) inched up 2.08 points or 0.02% to close at 7,468.73 yesterday. The broader all shares index also added 2.08 points or 0.04% to 4,436.79.
“Shares remained flat ahead of the 4Q GDP announcement [today]… With 3Q GDP revised and agricultural output released, analysts are more divided on the last print of growth for 2019,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message yesterday.
The Philippine Statistics Authority (PSA) revised its previously announced growth print for the third quarter to 6.0% from 6.2%, which means the fourth quarter expansion pace to be reported today must clock in higher for the government to achieve its 2019 GDP growth target of 6%-6.5%.
BusinessWorld’s poll of 20 economists last week showed an estimated GDP growth median of 6.4% for the fourth quarter, translating to a 5.9% GDP growth for 2019.
Aside from the GDP report, worries that the coronavirus has reached the Philippines also pushed some investors away for most of yesterday’s trading.
Philstocks Financial, Inc. Research Associate Claire T. Alviar said the turnaround of the PSEi in the last minute was due to China’s press briefing which addressed concerns on the virus.
“Concerns on the new coronavirus before China’s response, lingering regulatory risks and downward revision of the third quarter GDP weighed on the bourse before the last minute U-turn,” Ms. Alviar said in a text message.
Three sectoral indices closed in green territory yesterday: industrials increased 99.45 points or 1.06% to 9,413.17; property climbed 8.31 points or 0.21% to 3,861.92; and holding firms added 0.39 point or less than a percent to 7,215.15.
The losers were mining and oil, which gave up 171.57 points or 2.13% to end at 7,858.16; services lost 14.32 points or 0.93% to 1,525.24; and financials declined by 2.57 points or 0.14% to 1,794.62.
Value turnover stood at P7.10 billion on Wednesday with 755.73 million issues changing hands, from Tuesday’s P7.76 billion with 741.11 million issues.
Decliners edged up advancers by five stocks, 93 against 88, while 53 names were unchanged.
Foreign investors resumed selling their holdings, logging net outflows of P874.58 million yesterday from net purchases worth P422.45 million on Tuesday.
“The PSEi’s failure to close above 7,475 today confirms the breakdown of that major support level. The question on everyone’s mind is how long it can go,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Wednesday. “We see some support at 7,400, however, the next major support is at the 7,250 levels. Retail investors continue to look for opportunities in second and third liners with good growth potential.”
