Stocks stall as investors digest lower Q2 growth

MANILA, Philippines — Local shares traded flat yesterday due to mixed reactions from investors on the lower-than-expected gross domestic product (GDP) results as well as the central bank’s rate cut.

The benchmark Philippine Stock Exchange Index(PSEi) closed 3.32 points, or 0.04 percent, lower at 7,914.16, while the broader All Shares index declined by 9.09 points or, 0.18 percent, lower at 4,818.32.

“Today the market traded sideways reflecting the mixed reactions of investors on the second quarter GDP data,”Philstocks Financial Inc. senior research analyst Japhet Tantiangco said.

According to Tantiangco the decline in share prices due to disappointing GDP data was tempered by hopes for the rate cut.

Regina Capital Development Corp. Business Development head Luis Limlingan said some investors still remain optimistic despite the slower GDP growth.

“Though growth for the 2nd quarter grew at just 5.5 percent, many pointed to the weather, the delayed passing of the budget and trade wars limiting the country’s performance,”Limlingan said.

“However many are optimistic as these headwinds will not be as present for the rest of the year,” he said.

Limlingan said some cushioning was provided overseas as the sharp decline in bond yields stabilized to temper worries over slowing economic growth.

Majority of the sectoral indices ended in the red light with only the services and mining and oil closing with gains.

A total of 76,775 trades valued at P6.25 billion were made, while volume turnover stood at 834 million.

Advances outnumbered declines 103 to 91, while 45 remained unchanged.