Share prices closed lower Thursday as investors opted to take profit after a lower than expected gross domestic product growth for the first quarter of the year while the local currency ended trading day up.
The Philippine Stock Exchange index (PSEi) was down 116.72 points to 6,542.46, a 1.75 percent drop. The broader All Shares index was down 35.02 points or 1 percent to 3,481.55.
Gainers edged losers 95 to 87 with 43 stocks unchanged. Trading turnover reached P6.73 billion.
The peso closed at 57.38 to the dollar, up from 57.385 on Wednesday. The currency opened at 57.44, hitting a high of 57.33 and a low of 57.45. Trading turnover reached $1.1 billion.
Asian currencies were largely muted on a firmer dollar as investors cautiously awaited US inflation data for clues to the Federal Reserve’s rate outlook, while Malaysia’s central bank held rates steady as expected.
The South Korean won fell 0.6 percent and the Taiwanese dollar inched 0.2 percent lower.
The Malaysian ringgit inched 0.1 percent higher after the central bank held its benchmark interest rate unchanged at 3 percent, against a background of a weakening currency and a steady inflation outlook.
The decision came in line with market expectations, with a Reuters poll expecting the Bank Negara Malaysia (BNM) to keep its policy rate unchanged until at least 2026.
Some analysts had not ruled out the chance of a rate hike, citing the upside risk to inflation.
Indonesia’s financial markets were shut for a public holiday. On Tuesday, its central bank governor said a further rate hike was probably not needed as last month’s increase drew capital inflows and stabilised the rupiah amid a better-than-expected global backdrop.
The rupiah has lost nearly 4 percent this year, while the ringgit has depreciated 3.2 percent in 2024.
The Singapore dollar was largely unchanged.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said investors were dismayed by the 5.7 percent economic growth for the first quarter, which was lower than the market’s 5.9 percent expectation as well as the government’s target of 6-7 percent.
“This raised worries over the country’s economy amid the lingering headwinds including inflation and elevated interest rates,” he said.
Plopenio however noted that market turnover was higher than the year-to-date average of P4.98 billion, at P5.66 billion.
Most actively traded SM Investments Corp. was down P44 to P877. Ayala Land Inc. was up P0.05 to P27.85. BDO Unibank Inc. was down P4.40 to P141.80. ACEN Corp. was up P0.36 to P4.54. International Container Terminal Services Inc. was down P5 to P354. SM Prime Holdings Inc. was down P0.90 to P26.95. Universal Robina Corp. was down P1.80 to P108.70. Ayala Corp. was down P2 to P582.50. Wilcon Depot Inc. was up P0.50 to P18. Jollibee Foods Corp. was down P2 to P219.80.
