Stocks weaker despite slower GDP drop
The local stock market ended slightly weaker even after the government announced that the economy shrank by a lower rate in the last quarter.
The main index shed 11.77 points or 0.17 percent to close at 6,851.84 with only the Property and Holding Firms counters remaining in the green.
Volume dropped to 56.22 billion shares worth P8.8 billion as losers beat gainers 136 to 73 with 53 unchanged.
“Local shares traded slightly negative as the final print of 2020 GDP showed a slower contraction, however many opted to sell after the U.S. Fed's message did not sit well with investors,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Prior to release the index was trading below the 6800 mark with some estimates hitting as high as double digit losses.”
Philstocks Financial Senior Analyst Japhet Tantiangco said “Bargain hunting was seen in Thursday’s trading, bringing the PSEi to as high as 6,918.30 intraday. Selling pressures eventually took over, however, backed by worries over the country’s COVID-19 situation and how it may slow down or delay our economic recovery.”
He added, “The local bourse also took cues from Wall Street’s sell off overnight.”