Share prices closed mixed Thursday as investors digested the surprising economic growth of the Philippines on the backdrop of expected headwinds moving forward.
The peso closed up.
The Philippine Stock Exchange index (PSEi) was down 38.66 points, a 0.55 percent drop to 7,042.7.
The broader all shares index was down 9.87 points or 0.27 percent to 3,692.89.
Gainers edged losers 107 to 99 with 49 stocks unchanged. Trading turnover reached P5.11 billion.
The peso closed at 54.40 to the dollar, up from 54.63 on Wednesday.
The currency opened at 54.50, and hit a high of 54.39 and a low of 54.58. Trading turnover reached $730 million.
The peso held onto early gains on Thursday after the country posted its fastest annual economic growth in more than four decades, while other Asian currencies strengthened against a weaker US dollar.
The peso is up 2.3 percent so far this year.
The economy grew at a stronger-than-forecast annual rate of 7.2 percent in the fourth quarter due to pent-up demand following the lifting of COVID-19 restrictions.
“The above-consensus GDP growth in 2022 should give the Bangko Sentral ng Pilipinas space to tighten policy further in the first half of 2023,” said Nicholas Mapa, a senior economist with ING.
“There is a need to move cautiously in an uncertain environment with the lagged effects of the aggressive tightening delivered so far,” analysts at UOB said.
Philstocks Financial Inc. said an encouraging GDP growth, the market dropped due to worries over the decline in the Philippines’ exports in December last year.
This “somehow” reflects the challenging global economic environment due to several headwinds offshore such as the ongoing Russia-Ukraine war, China’s economic slowdown and the tight monetary policy in the US,” it said.
“Additionally, the higher than expected GDP growth in Q4 raised concerns that inflation may remain elevated amid strong aggregate demand which in turn may cause the Bangko Sentral ng Pilipinas to further hike rates moving forward,” it added.
Most actively traded GT Capital Holdings Inc. was up P14 to P525. BDO Unibank Inc. was steady at P122. Figaro Coffee Group Inc. was up P0.05 to P0.94. ACEN Corp. was down P0.10 to P7.40. Ayala Corp. was down P1 to P748. Ayala Corp. was up P1 to P748. Ayala Land Inc. was down P0.15 to P32.65. JG Summit Holdings Inc. was up P0.40 to P56.90. SM Investments Corp. was down P3 to P942. SM Prime Holdings Inc. was steady at P37.80.
