Market up as investors cheered GDP growth

“Positive cues” both locally and in the United States fueled investors’ optimism; the Philippine Statistics Authority reported that Philippine gross domestic product grew 7.6 percent in 2022, or over government’s 6.5

The Philippine Stock Exchange index gained 9.46 points to 7,052.16 on Friday, up 0.13 percent as investors cheered the country’s better-than-expected gross domestic product growth.

Philstocks Financial, Inc. assistant manager for research and online engagement Claire Alviar said the “positive cues” both locally and in the United States fueled investors’ optimism.

“The strong GDP growth implies that the demand remains strong, which could result in robust companies’ earnings. However, these may also push the inflation rate upwards, forcing the central bank to raise interest rates further,” she said.

Meanwhile, Luis Limlingan of Regina Capital noted that investors are now looking out for economic reports “that will give more information about the state of inflation.”

On Thursday, the Philippine Statistics Authority reported that the country’s GDP grew 7.6 percent in 2022 — above the government’s range of 6.5 percent to 7.5 percent.

Notably, on the last trading day of the week, foreigners helped lift the index as net inflows were recorded at P967.18 million. Net market value turnover, on the other hand, clocked in at P5.65 billion.

Sectors were mixed with Services and Properties ending in the red, down by 0.34 percent and 0.01 percent, respectively. Miners led the gainers after it logged a 0.74 percent increase.

Among index members, Aboitiz Equity Ventures, had the biggest gain of 2.61 percent to P59, while PLDT Inc. lost the most by 3.20 percent to P1,454.