From Wall Street sell-off to GDP sting: PSEi calms after dizzying ride
The local stock barometer ended slightly lower after a roller coaster ride on Thursday, paring down steep losses in early trade, as the country’s fourth quarter economic growth report tracked market expectations.
The Philippine Stock Exchange index (PSEi) shed 11.77 points or 0.17 percent to close at 6,851.84 in line with sluggish global markets.
The PSEi tumbled to as low as 6,770.75 after an overnight bloodbath in Wall Street but rebounded to as high as 6,918.30 as investors digested the fourth quarter Philippine gross domestic product (GDP) report. The contraction of 8.3 percent was not too far from the 8-percent consensus forecast, bringing the full-year decline to 9.5 percent, which is also within expectations. “Local shares traded slightly negative as the final print of the 2020 GDP showed a slower contraction, however, many opted to sell after the US [Federal Reserve System’s] message did not sit well with investors,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
The US Fed left the funds rate target range unchanged at zero to 0.25 percent. The policy outlook and asset purchase policy also remained the same.
The Fed, however, continued to emphasize the effect of COVID-19 on economic activity and acknowledged that the pace of the recovery has “moderated in recent months,” Limlingan noted.
The mining/oil counter saw the biggest decline at 2.17 percent, while the services counter lost 1.43 percent.
The financial and industrial counters slipped by less than 1 percent.
On the other hand, the holding firm and property counters modestly gained.
Value turnover for the day amounted to P8.8 billion. Foreign funds continued to flow out of the market, resulting in P1.31 billion net foreign selling for the day.
Decliners outnumbered advancers, 136 to 73, while 53 stocks were unchanged.
PLDT fell by 2.49 percent while ICTSI lost 1.61 percent.
BDO, SM Investments, URC and JG Summit all declined by less than 1 percent.
Notable decliners outside the PSEi included Apollo Global and Abra Mining, which gave up 19.76 percent and 15 percent, respectively.
Basic Energy, the day’s most actively traded company, lost 9.91 percent, while PHA and AV Energy likewise both slid by over 9 percent.
