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PSEi sheds 0.76% following BSP rate cut, Q2 GDP growth report

/ 05:10 AM August 10, 2019

The benchmark Philippine Stock Exchange index (PSEi) slid lower on Friday after the Bangko Sentral ng Pilipinas (BSP) reduced its key interest rate in the aftermath of a disappointing economic growth in the second quarter.

By the closing bell on Friday, the PSEi declined 0.76 percent, or 59.77 points, to 7,854.39 while the broader all-shares index was down 0.71 percent, or 34.21 points, to 4,784.11.

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The Monetary Board on Thursday cut the interest rate on the BSP’s overnight reserve repurchase facility by 0.25 percentage points to 4.25 percent, in line with market expectations.

Earlier that day, the Philippine Statistics Authority announced that the Philippine economy grew by 5.5 percent in the second quarter of 2019—coming in below analysts’ forecasts.

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Also on Friday, the Chinese Embassy issued a strong statement warning against the violation of the rights of Chinese workers in so-called Philippine offshore gaming operator (Pogo) hubs.

It also hinted at a crackdown on cross-border gambling, raising worries on the future of Pogo, which is credited for lifting the Philippine real estate market.

The property subindex on Friday led the list of losers as it dropped 1.48 percent. It was followed by services, down 1.26 percent, and industrial, down 1.16 percent. Gainers yesterday were mining and oil, up 0.37 percent, as well as financials, up 0.22 percent.

Trading was relatively light with a total of 2.8 billion shares valued at P6.2 billion changing hands on Friday. There were 114 decliners against 84 gainers while 47 companies closed unchanged.

Ayala Land Inc. was the most actively traded as it dropped 0.51 percent to P48.65 per share. It was followed by Jollibee Foods Corp., down 2.17 percent to P225; SM Investments Corp., up 0.51 percent
to P986; Security Bank Corp., up 0.78 percent to P193.50; and BDO Unibank Inc., up 0.34 percent to P146.50 per share.

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TAGS: Bangko Sentral ng Pilipinas, BSP, Philippine Stock Exchange index, PSEi
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