2018 GDP data seen driving stock market
Credit to Author: The Manila Times| Date: Sun, 20 Jan 2019 16:21:19 +0000
The stock market could receive a significant lift this week depending on gross domestic products (GDP) results set to be released by the government, analysts saud.
“A whole year figure that would meet the government’s projection of at least 6.5 percent may still give the market a boost,” Philstocks Financial, Inc. research associate Japhet Tantiangco said.
The Budget department has claimed that the economy likely grew by 6.5 percent last year — down from 2017’s 6.7 percent but at the lower end of the downardly revised 6.5-6.9 percent target — given government investments in infrastructure and human capital.
With GDP growth at 6.3 percent as of the end of September, the last three months of the year should have seen a 7.1 expansion — a significant improvement from first to third quarter outturns of 6.6 percent, 6.2 percent and 6.1 percent, respectively.
Official fourth quarter and full-year 2018 data is scheduled to be released on January 24.
Regina Capital Development Corp. head of sales Luis Limlingan, meanwhile, said the market could reach the 8,200 level on the back of positive GDP results.
“Failure to do so or negative macroeconomic shocks from the regions may pull us back to 7,800,” he said.
Tantiangco added that the investors should also watch out for this week’s China GDP report as this would have implications on the global economy.
“If its growth slowdown is beyond expectations, then it may rattle the global equity markets,” he said.
Investors will likely also tune in on developments in trade negotiations between the US and China, Tantiangco said.
The benchmark Philippine Stock Exchange index rose 1.51 percent or 110.92 points to end at 8,047.12 on Friday, boosted by reports that the US could lift tariffs imposed on China, while the wider All Shares added 1.29 percent or 61.08 points to 4,804.92.
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