Subdued GDP outlook pulls down PSEI

Less optimistic projections on the country’s economic growth this year caused the local stock market to extend its losing streak on Tuesday, with wary investors locking in gains ahead of the Independence Day holiday and the announcement of the US Federal Reserve’s latest policy rate stance.

The benchmark Philippine Stock Exchange Index (PSEi) retreated closer to the 6,300 level by the closing bell as it shed 0.75 percent, or 48.57 points, to 6,410.07. The broader All Shares Index likewise slipped by 0.5 percent, or 17.19 points, to 3,450.05.

A total of 400.9 million shares worth P3.3 billion changed hands, while foreign outflow totaled P742.96 million, stock exchange data showed.

This comes after the International Monetary Fund revised its growth forecast for the Philippines this year to 6 percent from 6.2 percent previously due to weaker household consumption and investments.At the same time, the American central bank is expected to conclude its policy rate-setting meeting on Wednesday, June 12.

The Fed earlier dampened hopes of an earlier rate cut, especially after better-than-expected employment data, which meant that consumers could withstand high interest rates, according to analysts.

Locally, all sub-sectors were in the red, with services dropping the most—by 1.79 percent—due to declines in index heavyweights International Container Terminal Services Inc. (ICTSI) and PLDT Inc.Razon-led ICTSI was the most actively traded stock as it slipped by 2.51 percent to P341.20 each. —Meg J. Adonis