Stocks nearly pierce 9,000

The benchmark Philippine Stock Exchange index (PSEi), nearly broke into the 9,000 level yesterday despite the country’s lower-than-expected economic performance for the fourth quarter and full year 2017.

The PSEi recorded a new record high at 8,999.02, up 48.40 points from Monday’s level, while the broader All-Shares index gained 41.60 points, or 0.80 percent, to finish at 5,214.61.

This was after the government reported that gross domestic product expanded 6.7 percent in 2017, slower than the 6.9 percent growth recorded in 2016.

Fourth quarter GDP was recorded at 6.6 percent, lower than the revised seven percent in the previous quarter but unchanged from the 6.6 percent a year ago.

The rest of the counters also ended in positive territory led by the holding firms.

Total value turnover was likewise robust, reflecting strong investor appetite for stocks. A total of P8.543 billion changed hands yesterday. Market breadth was positive, 125 to 84 while 47 issues were left unchanged.

With the strong performance of the market the past two days, traders said a breach of the 9,000-level is likely to happen soon, barring unexpected and negative developments that may affect the market.

Reacting to yesterday’s strong finish, BDO Capital president Ed Francisco said there was last minute shopping which perked up the market.

Throughout the day, investors were still absorbing the lower-than-expected gross domestic product report, he said.

“It was moving sideways the whole day. People were focused on absorbing the GDP result. It’s a little lower than expected but still great,” Francisco said.

Socioeconomic Planning Secretary Ernesto Pernia said despite the lower-than-expected GDP performance, the latest figures still show stable performance.

“It’s a strong finish that keeps our position as one of the fastest-growing economies in Asia after China’s 6.9 and Vietnam’s 6.8 percent.

Meanwhile, the peso pierced the 51 to $1 level yesterday after shedding 26.5 centavos to hit a fresh two-month low after economic managers reported a slower than expected economic expansion in the fourth quarter of 2017.

The local currency closed at 51.10 yesterday from Monday’s 50.835 to $1. This was the weakest level for the peso since closing at 51.18 to $1 last Nov. 14.