Stocks retreat as GDP performance sinks in

MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) ended in negative territory yesterday, closing at 5,621.94, down 31.22 points or 0.55 percent.

Likewise, the broader All Shares index dropped 10.08 points or 0.29 percent to end at 3,403.80.

The sectoral gauges were a mixed bag with the industrial, mining and oil and the holding firms indexes finishing in positive territory while the property, financials and services ending in the red.

Total value turnover reached P5.860 billion while market breadth remained negative, with 90 decliners against 75 advancers, while 55 issues were unchanged.

Traders said market investors continue to grapple with the effect of the coronavirus 2019 or COVID-19 on the economy.

Philstocks Financials said investors traded cautiously following news the first quarter gross domestic product contracted by 0.2 percent.

Even Wall Street’s higher close overnight –  as a result of sound corporate earnings and hopes of reopening the US economic soon – was not enough to encourage investors, Philstocks Financials said.

The Philippine economy posted its worst performance since the 1998 Asian financial crisis, the Philippine Statistics Authority (PSA) reported on Thursday.

Gross domestic product (GDP), the broad measure of economic output, shrank by 0.2 percent in the first three months of the year, a stark contrast from the revised 5.7 percent growth in the first quarter of 2019 and 6.7 percent in the fourth quarter.

This marked the first time in 84 straight quarters of GDP growth since the fourth quarter of 1998 when the economy suffered the brunt of the Asian financial crisis.