Stocks tumble on slower Q3 economic growth

MANILA, Philippines (Xinhua) - The stock market erased all the gains it made this week today after the local statistics agency's report showed that the growth of the country's gross domestic product (GDP) slowed to 5.3 percent in the third quarter.

The bellwether Philippine Stock Exchange index dived by 1.24 percent, or 91.25 points, to 7,265.34, while the broader all-share index declined by 1.05 percent, or 45.42 points, to 4,279.97.

Trading volume reached 4.28 billion shares worth 27.3 billion pesos with 129 stocks declining, 53 stocks advancing, and 39 were unchanged.

Analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment that all eyes and ears were trained on the release of third quarter 2014 GDP figures.

"It has almost been conceded that the pace will be slower than the 7 percent posted in the same quarter a year ago, but hopes are (high) that the number will sustain the quarter-on-quarter momentum," Calaycay said.

However, expectations were shattered when the government reported on Thursday that the country's economy grew only by 5.3 percent. This is lower than the 6.4 percent reported in the second quarter and the 7 percent in the same quarter last year.

Also posing a challenge to the market is the current near- record levels the Philippine Stock Market has reached, he said.

The local index closed Wednesday's session at 7,356.59, slightly lower than the record-high 7,392.20 that the market reached this year.

"It may be all, or mostly, sentiments that will push the market higher for the balance of the year - practically hinging on a Santa Claus rally. The trading calendar for December will be short- just about three weeks," Calaycay said.

Stocks in the 30-company index were mostly down. These include SM Investments Corp., Ayala Corp., and Megaworld Corp.