PSEi surges above 7,300 ahead of GDP report

THE MAIN INDEX bounced back to the 7,300 level on Monday as investors looked forward to the Philippines’ economic growth report amid uncertainties due to the leadership change in the United States.

The Philippine Stock Exchange index ( PSEi) rallied, gaining 141.69 points or 1.95% to 7,374.35 on Monday, while the broader all shares index surged 60.51 points or 1.38% to 4,426.14.

“After a relatively peaceful inauguration last week, investors resumed to bargain hunting on the assumption the Philippines would be one least vulnerable economies relative to all the global geopolitical uncertainties,” Luis A. Limlingan, managing director of Regina Capital Development Corp., said via text.

Investors are particularly optimistic about the Philippine economy’s expansion ahead of the release of the gross domestic product (GDP) data for the fourth quarter and the whole of last year, Joylin F. Telagen, analyst at I.B. Gimenez Securities, Inc., noted separately.

Most sectoral counters registered more than 1% in gains during the session. Holdings firms led other sectors after rising by 166.51 points or 2.26% to reach 7,526.72.

The services subindex, meanwhile, surged by 22.19 points or 1.57% to 1,427.60; financials by 25.84 points or 1.49% to 1,751.33; property by 49.79 points or 1.49% to 3,383.36; and industrials by 160.79 points or 1.46% to 11,174.45.

The mining and oil sector, on the other hand, bucked the uptrend after retreating by 33.24 points or 0.27% to 12,215.03.

The overall performance of the local market reflected US stocks which advanced following Mr. Trump’s inauguration as the 45th US president, Ms. Telagen said.

“China also avoided additional headwinds by reporting fourthquarter GDP at 6.8% through robust monetary and fiscal stimulus,” Mr. Limlingan noted.

Going forward, the market will remain watchful of Mr. Trump’s policy announcements and key economic data from the world’s largest economy, Ms. Telagen said.

In Monday’s trading, for instance, some investors decided to wait on the sidelines longer. Value turnover dropped to P5.61 billion from P5.69 billion after 1.22 billion issues changed hands.

Foreign investors also sold more shares than what they bought, registering net sales of P142.77 million, a reversal of the P120.95 million in net inflows booked last Friday. Advancers led decliners, 108 to 79, while 45 stocks were unchanged.

“Locally, however, the Philippine GDP will be something to look forward to at the end of the week,” Ms. Telagen added, noting the PSEi may break 7,400 and retest 7,500 on expectations of favorable numbers.

“Investors are positioning ahead of larger economic data coming out during the week,” Mr. Limlingan noted, citing the release of the GDP and durable goods reports from the US in addition to the Philippines’ national accounts.