PSEi slips 0.95% as mar­ket di­gests slower GDP

The Freeman - - BUSINESS -

Share prices on the Philip­pine Stock Ex­change de­clined on Fri­day as the slower gross do­mes­tic prod­uct (GDP) print put a damper on mar­ket sen­ti­ment.

The bell­wether PSEi shed 66.89 points or 0.95 per­cent to close at 6,968.82. The broader All Shares lost 19.99 points or 0.47 per­cent at 4,269.88.

“The mar­ket’s de­cline is due to the dis­mal third quar­ter GDP growth which in­vestors are still di­gest­ing,” Phil­stocks Fi­nan­cial Inc. re­search an­a­lyst Japhet Luis Tan­tiangco said.

The econ­omy grew at a slower pace of 6.1 per­cent in the third quar­ter of 2018. This com­pares with the re­vised 6.2 per­cent in the sec­ond quar­ter of the year, and the re­vised 7.0 per­cent in the same pe­riod last year.

This is also slower than mar­ket es­ti­mates at 6.2 per­cent.

“In­vestors may also be look­ing for­ward to the GDP for the last quar­ter of 2018. We need a 7-per­cent growth in the fourth quar­ter to reach the lower end of the gov­ern­ment’s pro­jec­tion of 6.5 to 6.9 per­cent, some­thing which is go­ing to be dif­fi­cult given that in­fla­tion is ex­pected to re­main el­e­vated for the rest of the year,” Tan­tiangco said.

“In­vestors are also weigh­ing in on the pos­si­bil­ity of a rate hike from the Fed­eral Re­serve in De­cem­ber af­ter keep­ing its rates un­changed in their re­cent meet­ing,” she said.

The Fed held in­ter­est rates steady on Thurs­day but re­mained on track to keep grad­u­ally tight­en­ing bor­row­ing costs, as it pointed to a healthy econ­omy that was marred only by a dip in the growth of busi­ness in­vest­ment.

For­eign funds bought P3.124 bil­lion shares and sold P3.792 bil­lion for a net sell­ing po­si­tion of P668.313 mil­lion.

More than 1.165 bil­lion shares val­ued at P5.957 bil­lion, changed hands. Ad­vancers led de­clin­ers, 105 to 84, and 53 is­sues were un­changed.

Week-on-week, the main in­dex lost 171.47 points or 2.40 per­cent from 7,140.29 on Oc­to­ber 21. The PSEi shed 1,755.31 points or 20.12 per­cent from 8,724.13 on Jan. 3, the first trad­ing day of 2018.

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