PSEi tumbles as investors gird for GDP surprise

MANILA  -Investors fled the market on Monday ahead of the release of the first quarter gross domestic product (GDP) report.

The benchmark Philippine Stock Exchange index (PSEi) fell by 1.27 percent, or 84.92 points, to settle at 6,600.74 while the broader All Shares index slipped 0.86 percent, or 30.42 points, to sit at 3,525.64 by the closing bell.

“Investors turned [to profit taking] after a strong week in local equities last week, and ahead of the … GDP [on May 11],” Regina Capital Development Corp. head of sales Luis Limlingan said.

Claire Alviar, Philstocks Financial Inc. assistant manager for research and online engagement, said investors sold off their positions due to fear of another policy rate hike.

“Investors are wary of a possible 25-basis point rate increase, which may still be on the table, particularly if the GDP for the first quarter proves to be robust,” she said.

Investors were taking a wait-and-see stance, she added. All subsectors were in the red. Property and services had the biggest declines at 2.88 percent and 1.31 percent, respectively.

—Tyrone Jasper C. Piad INQ

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