Stocks inch up after US GDP report

The local stock market was up slightly after the US also reported a stronger than expected economic growth rate.

The main index added 9.46 points or 0.13 points to close the week at 7,052.16 with the Mining and Oil counter posting the highest rise. Volume was still low at 1.12 billion shares worth P5.65 billion as gainers led losers 105 to 83 with 59 unchanged.

“Philippines shares inched up higher as investors cheered a better-than-expected fourth quarter GDP report that stoked hopes that the U.S. economy can experience a soft landing as the Fed hikes rates to tame inflation,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse gained following the positive cues in the US. Both the US and the Philippines exceed the expected GDP growth in the fourth quarter of 2022; investors continue to digest these data as these provide mixed sentiment.”

She added that, “On the upside, strong GDP growth implies that the demand remains strong which could result in robust companies’ earnings. However, these may also push the inflation rate upwards, forcing the central bank to raise interest rates further.”