The stock market declined for a second day on Friday as slower-than-expected second quarter economic growth and a substantial policy rate hike weighed on investor sentiment.
The benchmark Philippine Stock Exchange index (PSEi) fell 0.20 percent or 15.73 points to close at 7,804.98 while the wider All Shares dipped 0.02 percent or 113 points to 4,714.69.
“The dampened sentiment likely spilled over from missed GDP (gross domestic product) figures and the strong monetary tightening of the central bank yesterday (Thursday),” Regina Capital Development Corp. head of sales Luis Limlingan said.
“With Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla still looking strongly at a fourth rate adjustment, participants were inclined to lighten position temporarily,” he added.
On Thursday, the BSP’s policymaking Monetary Board announced a 50 basis point (bps) rate hike, double the 25 bps increases ordered in May and June, in a bid to mitigate rising inflation.
Earlier in the day, the Philippine Statistics Authority announced that economic growth had slowed to 6 percent in the second quarter from the downwardly-revised 6.6 percent recorded during the first three months of the year.
In addition to the rate hike and slower economy, Diversified Securities, Inc. trader Aniceto Pangan said the stock market also mimicked most regional counterparts, which were weighed down by continued trade tensions between the United States and China.
The Nikkei dropped 1.33 percent, Hong Kong declined 0.88 percent and Seoul shed 0.91 percent. Singapore and Bangkok also fell.
Shanghai, on the other hand, inched up 0.03 percent while Jakarta added 0.16 percent.
Back in Manila, all sectoral indices dropped except for mining and oil, which gained 0.72 percent.
Volume turnover stood at 1.5 billion issues valued at P8.3 billion.
Winners led losers, 96 to 86, while 51 issues were unchanged.
This article provided by NewsEdge.