Rate hike, slow growth dampen stock trading

MANILA, Philippines — The stock market  succumbed to selling pressure yesterday as investors continue to digest the disappointing six percent economic growth for the second quarter and after the Bangko Sentral ng Pilipinas’ move to raise rates by 50 basis points, the highest in a decade.

The benchmark Philippine Stock Exchange index (PSEi) declined by 15.73 points, or 0.20 percent, to finish at 7,804.98.

The broader All Shares index also lost 1.13 points or 0.02 percent to close at 4,714.69.

The other indices likewise ended in negative territory except for the mining and oil index which managed to stay afloat by 0.71 percent or 73.76 points.

Total value turnover reached P8.329 billion. Market breadth was surprisingly positive, 96 to 86 while 51 issues were unchanged.

Commenting on yesterday’s trading day, Luis Limlingan of Regina Capital said: “the local benchmark continued to succumb to selling pressure, and close this week 15.73 points lower at 7,804.98, with most sectors (save for mining/oil) still in the red.

“The dampened sentiment likely spilled over from missed GDP figures and the strong monetary tightening of the central bank yesterday. With BSP Gov. Espenilla still look strongly at a fourth rate adjustment, participants were inclined to lighten position temporarily,” he said.