Stocks drop below 6,000 on growth concerns

MANILA, Philippines —   The local stock market tumbled below the 6,000 level as concerns on the country’s economic growth dampened investor sentiment.

The benchmark Philippine Stock Exchange index (PSEi) finished yesterday’s session at 5,991.37, down by 2.2 percent or 134.85 points.

The broader All Shares index also plummeted by 1.47 percent or 49.52 points to close at 3,315.62.

Luis Limlingan of Regina Capital said the PSEi ended below the 6,000-level as the market reacted negatively to various lowered growth forecasts for the Philippines.

Investor sentiment weakened as concerns over slower economic momentum prompted cautious positioning among market participants. Meanwhile, selling pressure was observed across key sectors as investors reassessed their outlook on domestic growth prospects,” Limlingan said.

Michael Ricafort, chief economist at RCBC, said the PSEi retreated on expectations that the Bangko Sentral ng Pilipinas will likely match the rate hikes delivered by the US Federal Reserve, leading to higher borrowing costs.

All sectors were in the red, except for property, which gained by 0.53 percent. Services took the biggest hit with a 4.22-percent drop, followed by financials, which shed 3.09 percent.

Decliners battered advancers, 104 to 67, while 63 issues were unchanged.

Total turnover value improved to P10.32 billion from P6.83 billion the previous day.

ICTSI was the session’s top traded stock, plunging by 5.97 percent to P851 per share. It was followed by BDO Unibank, which fell by 4.74 percent to P124.50, and Ayala Land, which climbed by 5.11 percent to P14.80.