NEW HIGH DRIVES PSEI CLOSER TO 9,000

THE stock market moved closer to breaching the 9,000 level on Monday, notching a new all-time high ahead of the government’s release of 2017 economic growth data.

The benchmark Philippine Stock Exchange index (PSEi) hit an intra-day peak of 8,975.12 before losing some steam to end at 8,950.62 — up 0.39 percent or 34.70 points from Friday and the highest close since January 9, 2018’s 8,923.72.

The wider All Shares added 0.43 percent or 21.94 points to close at 5,173.01.

“Philippine markets bought up the index once more right before the release of 4Q GDP (gross domestic product) data,” a Regina Capital Development Corp. analyst noted.

“The credit impulse—derived from data on bank lending to the real economy until end-November 2017—sug- gests more support for private spending growth than in [the third quarter],” he added.

“[ N] exports [ also] likely weighed more on growth during the quarter. However, public spending likely rose in sequential and year-over-year terms in Q4, suggesting more support for overall growth from government spending than in the third quarter.”

First Grade Finance, Inc. Managing Director Astro del Castillo said investors had repositioned themselves ahead of the GDP data release.

“A stronger economic performance is expected by most analysts and investors,” del Castillo said, adding that it “seems like we will be breaking the 9,000 level as momentum continues to build up.”

Analysts polled by The Manila Times expect growth to have hit 6.6 percent last year, just above the lower end of the government’s 6.5-7.5 percent target.

The last three months of the year could have seen an easing to 6.6 percent from the previous quarter’s upwardly revised 7 percent due to factors such as a slowdown in consumer spending.

Analysts were upbeat regarding government spending, which is expected to have picked up as the year ended. An acceleration is expected this year

given the implementation of a tax reform law, revenues from which will be used for the “Build Build Build” program.

Only the mining and oil and on Monday, falling by 1.14 percent and 0.06 percent, respectively.

Volume turnover reached 890 million valued at P8.1 billion.

Losers led winners, 128 to 99, while 52 issues were unchanged.