PSEi closes lower on lingering GDP concerns and interest rates

Share prices on the Philippine Stock Exchange traded in the red on Friday, a day after the second quarter gross domestic product (GDP) results came in much slower than expectations and the central bank raised interest rates by 50 basis points.

The benchmark PSEi lost 15.73 points or 0.20 percent to 7,804.98 at the closing bell. The broader All Shares shed 1.13 points or 0.02 percent to 4,714.69.

“The dampened sentiment likely spilled over from missed GDP figures and the strong monetary policy tightening of the central bank yesterday,” Regina Capital Development Corp. head of sales Luis Limlingan said.

The second quarter GDP grew by 6.0 percent in the second quarter of 2018, from 6.7 percent a year earlier.

The Bangko Sentral ng Pilipinas raised its key policy rates by 50 basis points, the third and the most aggressive move of the central bank so far this year in light of persistent inflationary concerns.

Foreign funds bought P2.234 billion shares and sold P2.750 billion during the session, for a net selling position of P515.885 million.

More than 1.499 billion shares valued at P8.329 billion, changed hands. Advancers led decliners, 96 to 86, and 51 issues were unchanged.

Week-on-week, the bellwether lost 14.41 points or 0.18 percent from 7,819.39 on August 3. The main index lost 919.15 points or 10.53 percent from 8,724.13 on Jan. 3, the first trading day of 2018.