Stocks end lower
Most local stocks declined Monday, in step with the rest of the region, as investors pocketed gains following disappointing news on China’s growth.
The benchmark Philippine Stock Exchange index slipped 0.78 percent to 6,837.77. All subindices ended in the red, led by the 2.13-percent decline for mining and oil. A total of 2.99 billion shares changed hands for P8.87 billion.
China’s National Bureau of Statistics reported that gross domestic product (GDP) grew just 7.7 percent in the first quarter, well below the 8-percent consensus expectation. “The drop was due to mostly external conditions. China is one of the biggest economies in the world. A lot of countries in the region, including the Philippines, are mostly relying on demand from China in terms of trade,” said Maria Narciso, equities analyst at stockbrokerage AB Capital Securities Inc.
She said investors were also jittery over high valuations, estimated at between 19 times to 20 times earnings for 2013, giving investors yet another reason
to lighten their positions for now.
Henry Sy-led SM Investments Corp., the most actively traded, dipped 1.41 percent. Metro Pacific Investments Corp., which lost a bid to build the Naia Expressway Phase II, declined 0.87 percent while Philippine Long Distance Telephone Co. shed 1.23 percent.
“We still think the index will continue to trade sideways this week,” Narciso said. Miguel R. Camus
Get Inquirer updates while on the go, add us on these apps:
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94