Growth downgrade spooks PH stocks

Philippine stocks slumped on Monday, bucking gains across the region, after the World Bank cut its growth outlook for the Philippine economy this year.

The benchmark Philippine stock exchange index fell 0.67 percent, or 54.23 points, to 8,073.25 on Monday, while the broader all-shares index was down 0.40 percent, or 18.62 points, to 4,616.76.

All subsectors—save for mining and oil, which rose 0.38 percent—closed in the red. Losers yesterday were led by holding firms, down 0.81 percent, followed by services, down 0.62 percent.

The World Bank on Monday said the Philippine economy would expand by 6.5 percent in 2015, slower than the 6.7 percent forecast it released in October last year. The Philippines will, nevertheless, remain among the fastest growing economies until 2016, when growth was kept at 6.5 percent.

Data from the PSE showed that losers on Monday outnumbered gainers 98 to 77 with share prices of 50 companies closing unchanged. A total of 1.68 billion shares valued at P9.54 billion changed hands. Miguel R. Camus