Stocks dip despite stronger Q2 GDP

Published August 10, 2021, 4:53 PM

by James A. Loyola

The local stock market dipped despite the report of a stronger than expected gross domestic product (GDP) for the second quarter as investors fret over the impact of the lockdown in the second semester.

The main index shed 9.34 points or 0.14 percent to close at 6,623.23 with sectoral indices evenly mixed although the Mining and Oil counter posted strong gains.

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Volume was steady at 1.56 billion shares worth P6.31 billion as gainers edged out losers 94 to 88 with 54 unchanged.

“Philippines shares trade flat as second quarter GDP was released this morning to which investors assessed the per sector breakdown of economy,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “The country bounced out of a recession by recording a growth rate of 11.8 percent which exceeded the median estimates in Bloomberg.”

However, Limlingan said “Investors still sold a bit, after discounting the information and aligned with the sentiment overseas. To kick off the week, it was a muted beginning of the week for Wall St. as the Dow fell by -0.30 percent and the S&P 500 edged -0.09 percent lower last night.”

The spread of the Delta variant, and with bourses near all-time highs, triggered some profit-taking.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse declined as COVID-19 worries weighed on sentiment. This comes amid the resurgence in COVID-19 cases in the Philippines, resulting in the country being classified as a high risk area.”

He added that, “The surge in cases, if sustained, raises the risks of prolonging the stringent quarantine measures implemented in some parts of the country, including the NCR, and extending it to other areas. These in turn would be detrimental to the economy.”

Tantiangco said last minute bargain hunting trimmed the losses.

 
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