PSEi continues to weaken

The local stock barometer slumped for a second day in a row Friday after a softer-than-expected first-quarter Philippines gross domestic product (GDP) growth report.

The Philippine Stock Exchange index (PSEi) shed 29.02 points or 0.44 percent to close at 6,647.65.

The market was weighed down most by the industrial counter while the financial, services and mining/oil counters also dipped. The holding firm and property counter, on the other hand, posted a modest gain.

Value turnover for the day amounted to P16.34 billion. There were 66 advancers, which were edged out by 98 decliners, while 52 stocks were unchanged.

Investors sold down shares of AEV (-4.07 percent) alongside BPI and Jollibee, which both fell more than 3 percent. MPI, AC and AP slipped more than 2 percent while ALI, ICTSI, PLDT, AGI and EDC lost over 1 percent. URC and Meralco also contributed to the decline.

On the other hand, those that bucked the downturn were JGS (+5.79 percent) alongside Megaworld (+3.75 percent) while SMIC and SM Prime advanced more than 2 percent.

On Thursday, it was reported that Philippine GDP grew by 5.7 percent year-on-year, still above trend growth rate but way below the 6.4-percent market consensus.

“GDP surprise results will increase volatility in the near term with a downward bias as the market will look to test supports of recent months,” DA Market Securities said. The brokerage said the weak US GDP result for the first quarter would also contribute to selling pressure. The next support levels were seen at 6550 and 6400.

“We expect the market to test the sturdiness of these support levels, after which the market will most likely enter into wide-ranged consolidation that may span weeks,” it said.

But DA Market said the outlook on local equities remained bullish for the long term. Doris C. Dumlao