Shutdown misses financial stocks in last quarter results; S&P 500 downs on rising earnings

Ram Christian S. Agustin and Marianne Ilumba | January 24, 2018

Photo from MoneyCrashers.com

The Philippine Stock Exchange index (PSEi) ending the day just shy of 9,000, added 48.40 points to close at 8,999.02 or 0.54 percent on Tuesday where it notched its sixth record high for the year, as investors discounted news that Philippine economic growth had slowed last year.

The decline was blamed on the results of 2016 stemming from the election year where officials said the dip, compared to previous election years, was actually moderate in comparison to the 2017 result of 6.7 percent which was near the bottom end of the 6.5-7.5 percent target for the year.

“Philippine stocks climbed despite less than expected fourth quarter GDP growth. Investors discounted this and looked forward to this year’s growth target,” a Regina Capital Development Corp. analyst said.

Growth in the fourth quarter alone moderated to 6.6 percent from July-September’s revised 7 percent where nearly all sectoral indices were in the green except for financials, which were down 0.43 percent.

“Earlier in the morning enthusiasm was running high prior to the release [of the growth results as US stocks continued to record fresh highs,” the analyst added.

"A lot of hopes have been in the ‘Build Build Build’ rollout and … I think investors are just right now putting that valuation portion aside for the moment and we’re just looking at the good things — the new hope that the new year brings to everyone,” Philstocks Financial, Inc. Research Head Justino Calaycay Jr. said.

Listed firms are expected to start reporting full-year results next month. Meanwhile, winners led losers, 125 to 84, while 47 issues were unchanged.