PHL stocks end volatile 2016 at 6,840.64

Local stocks retreated slightly to end the year above 6,800, attributed mainly to jitters over an interest rate hike in the United States.

The benchmark Philippine Stock Exchange index (PSEi) lost 5.80 points to close at 6,840.64 on Thursday from the previous day's 6,846.44. It was 1.60 percent lower than last year's 6,952.08 close.

"The market experienced a lot of volatility in 2016 arising from unexpected developments in the global political landscape as well as the interest rate hikes in the US. Despite this, we churned a relatively healthy capital raising number, considering most of these activities happened during the second half of the year. This is a testament to the strength of the local economy," PSE President and Chief Executive Officer Hans B. Sicat said.

For the year, total capital raised amounted to PHP170.12 billion, slightly lower than the PHP184.60 billion raised for the whole of 2015.

The size of the stock market expanded by PHP973 billion in 2016, as total market capitalization ended at PHP14.44 trillion on the last trading day of 2016, from PHP13.47 trillion in 2015.

The stock offerings helped support this growth and offset the decline in prices in the market.

"The 'debates' for and against a second rate hike following a December 2015 action lingered the entire year -- with markets putting in their 'bets' at each of the eight Federal Open Market Committee (FOMC) meeting," said Justino Calaycay Jr., head of marketing and research of A&A Securities Inc.

Calaycay said a new US government and an era of rising oil prices, among many other things, will be the "threads to dominate the narratives for the market this 2017".

In terms of other market indices, the All Shares Index finished the year with a gain of 4.1 percent to 4,156.07 while the Mining and Oil index was the best performing sectoral index as it gained 13.7 percent in 2016.

"We believe there will be a healthy pipeline of Initial Public Offerings and other fund raising activities in 2017. We will continue to work with our regulators so we can continue to introduce new products for our market in 2017 as we have successfully done so this year," added Sicat.

Daily average value turnover for the year came in at PHP7.81 billion, down from PHP8.96 billion in 2015.

Source: Philippines News Agency