The BENCHMARK INDEX fell to 7,000 and hit a near two-month low on Thursday following slow growth in the Philippine economy in the third quarter and as Republican Donald J. Trump won the US presidential election.
The Philippine Stock Exchange (PSEi) index fell 2.1% or 150.98 points to end at 7,014.44 on Thursday, while the broader index of all shares fell 1.97% or 78.33 points to 3,891.64.
This was the PSEi’s worst close in almost two months or so as it ended at 6,944.88 on September 11. The benchmark index also fell below 7,000 intraday, hitting a low of 6,923.99.
“The local market died on Thursday. Investors are pricing in the negative effects of US protectionist policies on the state of the global economy as Mr. Trump winning the US presidential race,” said Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco speaking on Viber message.
“Another concern for investor sentiment was the decline in third quarter GDP growth to 5.2%,” he added.
The Philippine economy grew by 5.2% in the third quarter, slower than the revised 6.4% expansion in the second quarter and a 6% print in the same period last year. This was below the average GDP growth forecast of 5.7%. BusinessWorld poll of 12 analysts.
“Philippines stocks retreated again as third quarter GDP figures came in at a bigger-than-expected 5.2%. “While private consumption has continued to grow, fixed investment and government spending have weakened as exports have slowed significantly,” said Regina Capital Development Corp. Head of Sales. Luis A. Limlingan in a Viber message.
“Meanwhile, US stocks rallied sharply on Wednesday, hitting major highs following Donald Trump’s victory in the 2024 presidential election. Mr. Trump is seen as favoring low corporate tax rates, deregulation, and industrial policies that support domestic jobs, all of which could stimulate the US economy and benefit dangerous goods.”
Almost all industry indicators are slightly off. The stock fell by 3.93% or 108.90 points to 2,656.43; mining and oil decreased by 2.59% or 219.83 points to 8,262.81; industrials fell 2.25% or 224.45 points to 9,712.17; funds fell 2.1% or 49.09 points to 2,282.48; and holding companies fell 1.9% or 116.86 points to 6,015.38.
Meanwhile, utilities rose 0.04% or 1.07 points to 2,163.43.
The stock rose to P9.72 billion on Thursday with 1.11 billion shares traded up from P4.66 billion and 1.34 billion shares changing hands on Wednesday.
Decliners outnumbered promoters, 167 against 46, while 40 names were unchanged.
Total foreign trade reached P3.9 billion on Thursday from P1.12 billion on Wednesday. – Revin Mikhael D. Ochave
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