PSEi ebbs on below-forecast local GDP growth
PSEi closing May 08, 2025
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MANILA, Philippines — The slower-than-expected growth of the Philippine economy in the first quarter dampened investor sentiment on Thursday, with the local bourse erasing its recent gains.
By the end of the session, the benchmark Philippine Stock Exchange Index (PSEi) tumbled by 1.17 percent, or 75.96 points, to close at 6,389.49.
The broader All Shares Index likewise closed lower by 0.74 percent, or 28.03 points, to 3,740.35.
A total of 733.54 million shares worth P6 billion changed hands, stock exchange data showed.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the decline came after the 5.4-percent gross domestic product (GDP) growth print in the first quarter.
READ: Slower than expected: Philippine GDP grows by 5.4% in Q1
Although this is slightly faster than the 5.3-percent rise in the fourth quarter of 2024, this was weaker than the 5.9 percent recorded in the same period last year.
This likewise fell below expectations of experts. An earlier Inquirer poll of economists had estimated first-quarter GDP growth at 5.9 percent.
Taking cue from US Fed
At the same time, investors digested the US Federal Reserve’s move to keep policy rates unchanged, said Japhet Tantiangco, research head at Philstocks Financial Inc.
READ: US Fed pauses rate cuts again and warns of inflation, unemployment risks
This offered a less optimistic outlook on the US economy, Tantiangco noted.
As a result, all subsectors bled, with the conglomerates suffering the steepest decline.
Top-traded stock International Container Terminal Services Inc. was among the rare index gainers as it added 0.63 percent to P385.40 each.
It was followed by BDO Unibank Inc., down 0.67 percent to P164.10 and Ayala Land Inc., down 2.29 percent to P23.45.
