Share prices edged lower Thursday amid disappointment over the lower-than-expected economic output in the second quarter.
The peso closed lower.
The Philippine Stock Exchange index (PSEi) was down 80.79 points, a 1.24 percent drop to 6,449.66.
The broader all shares index was down 34.78 points or 1 percent to 3,445.38.
Losers edged gainers 107 to 57 with 51 stocks unchanged. Trading turnover reached P3.64 billion.
The peso closed at 56.22 to the dollar, down from 56.20 on Wednesday.
The currency opened at 56.25 and hit a high of 56.13 and a low of 56.45. Trading turnover reached $1.24 billion.
Asian currencies traded sideways on Thursday as investors erred on the side of caution ahead of the crucial US inflation report, Reuters reported.
The central bank hinted at a prudent pause in monetary tightening.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said he sees growth in the region’s gross domestic product normalizing at 5 percent to 6 percent levels in the coming quarters.
He added he sees a possible 25-basis point interest rate hike in the next policy meeting on August 17, to match with the latest hikes in the US, helping the peso stabilize.
However, “a pause cannot be completely ruled out given the softer GDP data recently,” he said.
Juan Paolo Colet, managing director at China Bank Capital Corp., said investors sold down the market “after a surprisingly disappointing Philippine second quarter GDP print,” which he said is far below consensus the consensus forecast of 6 percent.
“This raised investor concerns that full year growth will fall below the government’s target of 6 to 7 percent and drag the performance of listed companies,” he said.
Most actively traded Ayala Land Inc. was down P0.10 to P29.30. International Container Terminal Services Inc. was down P6.20 to P208. BDO Unibank Inc. was up P0.10 to P142.50. SM Prime Holdings Inc. was down P0.90 to P31.90. Jollibee Foods Corp. was down P4 to P249. SM Investments Corp. was down P13 to P887. Metro Pacific Investments Corp. was down P0.01 to P4.99. Universal Robina Corp. was down P1.30 to P123.50. Bank of the Philippine Islands was steady at P115.80. Monde Nissin Corp. was down P0.34 to P7.56.
