PSEi ends lower

The local stock barometer ended flat at the start of the week while regional markets were mixed even as Chinaís third-quarter economic growth rate of 6.9 percent beat consensus forecasts.

The Philippine Stock Exchange index (PSEi) was down 0.88 points or 0.01 percent to close at 7,054.86 yesterday. Across the region, stock markets were initially upbeat but turned mixed following the much-awaited China economic data.

Chinaís third-quarter growth of 6.9 percent came in better than the consensus outlook of 6.8 percent but it was slower than the 7-percent growth rate in the first half. The report initially allayed fears of a hard landing but sentiment turned mixed as investors looked more closely at the numbers.

ìThis is the second lowest reading since the series began in 1992. In nominal terms, growth of secondary industry fell to a record low of just 0.2 percent year-on-year,î a Citi research note said Monday, noting that the manufacturing sector was close to recession.

ìActual GDP (gross domestic product) growth should be lower than official number. The official GDP growth rate assumes a GDP deflator of -0.7 percent, 0.9 percentage points lower than our estimate,î the research note said. Doris Dumlao-Abadilla

Read more...