PSEi slides as group warns of fallout from slow economic reopening

Stocks closed lower on Thursday after the country’s largest business group warned of a deeper recession if the government moved too slowly in opening up the economy, while foreign selling accelerated.

The benchmark Philippine Stock Exchange Index (PSEi) dropped 0.69 percent, or 50.48 points, to 7,299.34 while the broader all-shares index lost 0.61 percent, or 24.30 points, to 3,933.70.

As investors wait for the results of the Bangko Sentral ng Pilipinas’ Monetary Board meeting late Thursday, the Philippine Chamber of Commerce and Industry urged President Duterte to fully reopen the economy even before herd immunity is reached or risk “irreversibly” damaging the economy.

Foreigners also turned into net sellers to the tune of P589.91 million ahead of the rate-setting meeting.

BSP Governor Benjamin Diokno had previously indicated that interest rates would be kept at a record low of 2 percent to help business activity recover.

Most PSE subsectors also ended in the red, with financials (-1.3 percent) and mining and oil (-1.26 percent) suffering the biggest declines. Services and holding firms each closed down by 0.86 percent while industrial stocks sank 0.36 percent.

With interest rates expected to remain unchanged, property stocks gained 0.3 percent on Thursday.

PSE data showed 882.46 million shares valued at P7.82 billion changing hands. There were 141 decliners versus 55 advancers, while 45 companies closed unchanged.