The local stock market managed to hold its ground despite news that the Philippine  economy’s performance was worse than expected.

The Philippine Stock Exchange index (PSEi) inched up 9.42 points or 0.15 percent to close at 6,326.83 as sectoral indices were evenly mixed.

Volume remained anemic at 9.95 billion shares worth P4.64 billion as losers beat gainers 122 to 82 with 43 steady.

“Philippine shares closed in the green despite the lower than expected first quarter GDP print as investors focused on the rebalancing of the MSCI, and more earnings releases,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, while first quarter figures were below consensus, it is widely expected that growth will accelerate in the second quarter given the low base from last year and the acceleration of people getting vaccinated to speed up the opening of the economy.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “Last minute bargain hunting lifted the local market higher. Investors took opportunity out of the market’s dip within the trading day caused by the dismal first quarter 2021 GDP figures.”

He said “The progress in the country’s COVID-19 vaccine procurement helped spur positive sentiment.”

Tantiangco added that trading lacked conviction as seen by the low turnover while foreign stocks investors continue to be net sellers.
AAA Equities Head of Research Chris said “The market ended with minor gains, mainly flat on low trading volumes. The market has been slowly declining as investors remain very cautious amid the current risks.”

He added that, “Most are hoping for a pick up in the pace of the inoculation which would result in less restrictions and a faster economic recovery.”