Strong 2023 GDP growth pushes PHL stocks up

SHARES climbed on Wednesday as the Philippines posted robust gross domestic product (GDP) growth last year, even as it fell below the government’s target and slowed from the 2022 level.

The 30-member Philippine Stock Exchange index (PSEi) rose by 24.43 points or 0.36% to close at 6,646.44 on Wednesday, while the broader all shares index gained by 11.78 points or 0.33% to finish at 3,499.49.

“The local index rose on the back of the country’s full-year 2023 GDP print of 5.6%, which signaled that the economy remains strong,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“Although this was below the government’s target of at least 6%, the market viewed the data positively as it was not only above the median estimate of many economists, but it also showed that the Philippines was the fastest growing economy among ASEAN (Association of Southeast Asian Nations) countries that have published their respective GDP data to date,” he added.

Philippine GDP grew by 5.6% in 2023, falling short of the government’s 6-7% full-year target, the Philippine Statistics Authority reported on Wednesday. This was slower than the 7.6% expansion in 2022, but was a tad higher than the 5.5% median estimate of 20 economists in a BusinessWorld poll last week.

In the fourth quarter alone, the economy grew by 5.6%. This was below the revised 6% in the third quarter and 7.1% in the same quarter in 2022.

“Meanwhile, the IMF (International Monetary Fund) upgraded its outlook of the Philippines for 2024. On the back of robust recovery in investments and exports, the IMF sees the Philippines growing by 6% this year from the previous 5.9% forecast,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The IMF’s forecast is below the government’s 6.5-7.5% GDP growth target for this year.

“According to the multilateral lender, the risks to monitor are China’s weak recovery, abrupt global economic slowdown, and sudden tightening in financial conditions,” Mr. Limlingan added.

Majority of sectoral indices ended higher on Wednesday. Property climbed by 55.14 points or 1.92% to 2,921.49; services went up by 14.23 points or 0.88% to 1,618.29; financials increased by 14.16 points or 0.75% to 1,885.75; and mining and oil rose by 5.45 points or 0.05% to 9,247.39.

Meanwhile, holding firms fell by 40.37 points or 0.63% to 6,329.07; and industrials went down by 55.66 points or 0.62% to 8,919.98.

Value turnover increased to PHP 6.76 billion on Wednesday with 423.55 million issues changing hands from the PHP 4.48 billion with 550.64 million shares traded the previous day.

Advancers outnumbered decliners, 99 to 78, while 55 names closed unchanged.

Net foreign buying stood at P256.1 million on Wednesday versus the PHP 566.33 million in net selling recorded on Tuesday. — R.M.D. Ochave