PSEi dips as China’s growth slump adds to recession woes
The benchmark Philippine Stock Exchange Index (PSEi) tumbled on Friday after China fell short of growth targets in the second quarter, heightening global recession fears.
Ayala Land, meanwhile, led declines among blue chip companies a day after the Bangko Sentral ng Pilipinas (BSP) announced aggressive action to fight inflation.
By the closing bell, the PSEi shed 0.85 percent, or 52.87 points, to 6,195.26 while the broader All Shares index sank 0.63 percent, or 21.27 points, to 3,345.73.
Trading volume was steady, with 785 million shares valued at P5.64 billion changing hands. Foreign selling continued on Friday with net sales reaching P628.5 million, PSE data showed.
Weakest growth in two years
On Friday, China’s National Bureau of Statistics said gross domestic product expanded just 0.4 percent in the second quarter, its weakest print in over two years.
This was also below the 1 percent growth forecast made by economists in a Reuters poll.
Moreover, investors continued to weigh the off-cycle 75-basis point policy rate hike announced by the BSP on Thursday. Save for the industrial subsector (0.45 percent up), all PSE indices were down on Friday.
Mining and oil dropped 3.19 percent due to the slide in commodity prices. It was followed by services, down 1.93 percent; financials, down 1.3 percent; property, down 1.11 percent, and holding firms, down 0.6 percent.
Top traded company
Ayala Land was the top traded company as it fell 5.25 percent to P22.55 per share.
It was followed by International Container Terminal Services Inc., down 3.81 percent to P179.40; BDO Unibank Inc., down 1.87 percent to P120.70; Ayala Corp., down 4.88 percent to P575.50, and SM Investments Corp., down 0.06 percent to P775 per share.
Nickel Asia Corp. plunged 6.61 percent to P5.09 while SM Prime Holdings Inc. rose 0.82 percent to P37. Converge ICT Solutions Inc. was down 4.71 percent to P20.25 while Monde Nissin Corp. added 1 percent to 14.10. Semirara Mining and Power Corp. declined 2.31 percent to P38.10 per share.
Overall, there were 124 losers against 70 advancers while 44 companies closed unchanged, PSE data showed.
—Miguel R. Camus
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