PSEi ebbs on sub-forecast GDP growth
The slower-than-expected growth of the Philippine economy in the first quarter dampened investor sentiment on Thursday, with the local bourse erasing its recent gains.
By the end of the session, the benchmark Philippine Stock Exchange Index (PSEi) tumbled by 1.17 percent, or 75.96 points, to close at 6,389.49.
The broader All Shares Index likewise closed lower by 0.74 percent, or 28.03 points, to 3,740.35.
A total of 733.54 million shares worth P6 billion changed hands, stock exchange data showed.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the index’s decline came after gross domestic product (GDP) growth in the first quarter came out at 5.4 percent.
Although this is slightly faster than the 5.3-percent rise in the fourth quarter of 2024, this was weaker than the 5.9 percent recorded in the same period last year.
This likewise fell below expectations of experts. An earlier Inquirer poll of economists had estimated first-quarter GDP growth at 5.9 percent.
At the same time, investors digested the US Federal Reserve’s move to keep policy rates unchanged, said Japhet Tantiangco, research head at Philstocks Financial Inc.
This offered a less optimistic outlook on the US economy, Tantiangco noted.
As a result, all sub-sectors bled, with the conglomerates suffering the steepest decline.
Top-traded stock International Container Terminal Services Inc. was among the rare index gainers as it added 0.63 percent to P385.40 each.
It was followed by BDO Unibank Inc., down 0.67 percent to P164.10; Ayala Land Inc., down 2.29 percent to P23.45.
