Stocks plummet on slower economic growth

MANILA, Philippines — Share prices took a heavy beating yesterday as the country’s disappointing third quarter economic growth dampened sentiment.

The benchmark Philippine Stock Exchange index (PSEi) plummeted by 1.46 percent or 84.03 points to finish yesterday’s session at 5,677.92.

The broader All Shares index also fell by 1.08 percent or 34.79 points, ending at 3,183.52.

Luis Limlingan of Regina Capital said the PSEi closed lower as investors reacted to the weaker-than-expected gross domestic product (GDP) print, raising concerns over the country’s economic growth prospects.

GDP grew by 2.1 percent in the third quarter, slower than the previous quarter’s 2.4 percent and four percent in the same period last year.

Limlingan said sentiment remained fragile amid potential El Niño risks and persistent inflationary pressures, which could further weigh on domestic demand and economic activity.

“The combination of growth concerns and macroeconomic headwinds prompted investors to maintain a cautious stance and limit exposure to local equities,” he said.

All sectors were in the red except for the mining and oil index, which jumped by 2.34 percent. Property incurred the biggest loss at 2.07 percent, followed by holding firms, which dropped by 1.94 percent.

Total value turnover opened the week at P5.98 billion.

Decliners crushed advancers, 100 to 74, while 69 issues were unchanged.

“The risk-reward profile of the market is already quite undemanding, and valuation looks attractive with the view that we are already seeing peak policy tightness with the prospect of easing in the next six to 12 months,” Manulife Investments Philippines’ head of equities Elle Jamil said.