PSEi climbs 1.45% on Q1 GDP surprise

The main Philippine Stock Exchange index climbed 1.45 percent on Friday, fired by a surprising 6.4 percent growth in gross national product during the first quarter.

 

“If the economy grew 6.4 percent against predictions of 4.3 to 5.4, you have to price that into the market,” said Mark Angeles, head of research at First Metro Securities Brokerage Corp.

 

“Considering that the PSEi was down more than 50 points before the GDP announcement, the 6.4 percent was a very, very big game changer,” trader Reginald Lim, also of First Metro Securities.

 

The PSEi was up 72.91 points or 1.45 percent to 5,019.23 at the close.

 

More than 2.020 billion shares valued at P14.520 billion were traded in the morning and afternoon sessions.

 

Still, decliners led advancers 86 to 83, with 33 issues closing unchanged.

 

What happened was a shift in positions as fund mangers went for DMCI, which would form part of the MCSI Asia Pacific index starting Friday, noted Angeles of First Metro Securities. 

 

But the bottom line of the first quarter GDP, Angeles added, was that “if it was above 6 percent, then it’s a buy for the market." —GMA News