PHL shares rebound on World Bank GDP outlook

PHL shares rebound on World Bank GDP outlook

PHILIPPINE SHARES bounced back on Thursday after the World Bank said it expects the country to be among the fastest growing economies in Southeast Asia this year and ahead of the release of latest US consumer inflation data.

The 30-member Philippine Stock Exchange index (PSEi) gained by 67.62 points or 1.03% to close at 6,613.73 on Thursday, while the broader all shares climbed by 26.12 points or 0.75% to end at 3,495.76.

“The World Bank’s projection that the Philippines will be one of the fastest-growing economies in Southeast Asia this 2024 was cheered by many,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

In its latest Global Economic Prospects, the multilateral lender projected Philippine gross domestic product (GDP) to expand by 5.8% in 2024, same as its forecast in December.

The projection is the fastest among Southeast Asian economies, tied with Cambodia (5.8%), and ahead of Vietnam (5.5%), Indonesia (4.9%), Malaysia (4.3%), Lao People’s Democratic Republic (4.1%), Timor-Leste (3.5%), Thailand (3.2%), and Myanmar (2%).

However, this is below the Development Budget Coordination Committee’s 6.5-7.5% growth target for 2024.

The Philippine Statistics Authority will release fourth-quarter and full-year 2023 GDP figures on Jan. 31.

“This Thursday, the local market rose… due to positive cues from Wall Street overnight as investors positioned ahead of the December US inflation report,” Mr. Plopenio added.

“Philippine shares settled higher as investors made bets ahead of the US December inflation reading,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

December US consumer price index data were set to be released overnight.

Back home, the majority of sectoral indices closed higher on Thursday except for services, which dropped by 9.02 points or 0.55% to 1,606.15.

Meanwhile, financials rose by 50.47 points or 2.81% to 1,843.91; industrials climbed by 111.54 points or 1.23% to 9,180.52; mining and oil increased by 73.88 points or 0.77% to 9,558.56; holding firms went up by 40.19 points or 0.64% to 6,301.29; and property gained by 9.03 points or 0.31% to end at 2,891.56.

“Among the index members, Jollibee Foods Corp. was at the top, climbing 3.92% to P259.80. JG Summit Holdings, Inc. lost the most, dropping 1.71% to P40.20,” Mr. Plopenio said.

Value turnover declined to P5.27 billion on Thursday with 346.84 million issues changing hands from the P11.57 billion with 518.12 million shares seen the prior day.

Advancers outnumbered decliners, 100 to 67, while 51 names closed unchanged.   

Net foreign buying increased to P648.31 million on Thursday from P557.38 million on Wednesday. — R.M.D. Ochave