Main in­dex ekes out gain on Q3 GDP growth data

Business World - - Thestock Market - By Arra B. Fran­cia Re­porter

LO­CAL SHARES barely moved on Thurs­day, weighed down by the slower-than-ex­pected eco­nomic growth in the third quar­ter.

The bell­wether Philip­pine Stock Ex­change in­dex (PSEi) eked out a gain of 0.02% or 1.78 points to close at 7,035.71, man­ag­ing to tem­per losses seen in in­tra­day trad­ing. The broader all-shares in­dex, mean­while, dropped 0.21% or 9.05 points to 4,289.87.

Phil­stocks Fi­nan­cial, Inc. noted that the re­lease of thirdquar­ter gross do­mes­tic prod­uct (GDP) data in­flu­enced the mar­ket. The Philip­pine Statis­tics Au­thor­ity re­ported on Thurs­day that the econ­omy grew by 6.1%, slower than the sec­ond quar­ter’s re­vised 6.2%.

“While this is not a bad sig­nal, it does raise con­cern... Broadly how­ever, the re­port shows ser­vices post­ing the fastest growth (6.9%) fol­lowed by in­dus­try (6.2%). Some­what within ex­pec­ta­tions, agri­cul­ture slowed to 0.4%. On the de­mand side, house­hold spend­ing slowed fur­ther to just 3.5% (per capita),” the bro­ker­age said in a re­search re­port.

The GDP growth print was also lower than the me­dian es­ti­mate of 6.3% in a Busi­nessWorld poll of 15 an­a­lysts last week.

“This was in con­trast to Asia and the US wherein rose sharply on Wed­nes­day af­ter the midterm elec­tion re­sults came in about as ex­pected, lift­ing a cloud of un­cer­tainty that was weigh­ing on the mar­ket,” Regina Cap­i­tal De­vel­op­ment Corp. Man­ag­ing Direc­tor Luis A. Lim­lin­gan said in a mo­bile mes­sage.

The Dow Jones In­dus­trial Av­er­age jumped 2.13% or 545.29 points to 26,180.30. The S&P 500 in­dex climbed 2.12% or 58.44 points to 2,813.89, while the Nas­daq Com­pos­ite in­dex rose 2.64% or 194.79 points to 7,570.75.

Asian mar­kets also stayed mostly in pos­i­tive ter­ri­tory, re­flect­ing the gains on Wall Street af­ter the United States midterm elec­tions.

Sec­toral in­dices were split be­tween gain­ers and losers. The min­ing and oil counter led losers, giv­ing up 7.02% or 691.47 points to 9,146.04, as sub-in­dex heavy­weight Semirara Min­ing and Power Corp. shed 10.03% to P26 apiece. The com­pany said its net in­come fell by 23% to P8.9 bil­lion in the first nine months of the year.

Ser­vices also went down by 1.32% or 18.99 points to 1,412.38, while hold­ing firms slipped 0.06% or 4.20 points to 6,922.23.

On the other hand, prop­erty gained 0.73% or 24.99 points to 3,417.76. In­dus­tri­als climbed 0.33% or 35.43 points to 10,687.93 and fi­nan­cials added 0.12% or 2.03 points to 1,591.87.

Some 1.56 bil­lion is­sues val­ued at P8.39 bil­lion switched hands, down from the pre­vi­ous ses­sion’s P46.50 bil­lion which in­cluded the crossed shares by San Miguel Food and Bev­er­age, Inc. due to its fol­low-on of­fer­ing.

Net for­eign out­flows stood at P668.31 mil­lion, com­pared to Wed­nes­day’s P38.60-bil­lion net pur­chases.

De­clin­ers were al­most dou­ble the ad­vancers, 132 to 70, while 50 is­sues were un­changed.

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