Stock market drops on PH growth downgrade
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Mon, 01 Apr 2019 16:48:41 +0000
THE stock market retreated on Monday, bucking a regional rally, as investor sentiment was said to have been dampened by the World Bank’s lowering of its Philippine growth forecasts.
The bellwether Philippine Stock Exchange index (PSEi) fell by 1.02 percent or 80.62 points to close at 7,840.31 while the wider All Shares declined by 0.82 percent or 40.04 points to finish at 4,824.13.
Fidelity Securities Inc. trader Jenesis dela Peña said the market reacted negatively to the World Bank’s decision to cut its 2019 Philippine growth forecast to 6.4 percent, from 6.5 percent previously, given budget approval delays, an ongoing El Niño and a global trade slowdown.
The World Bank also downgraded its 2020 and 2021 estimates to 6.5 percent from 6.6 percent previously.
The PSEi ignored a positive lead from Wall Street, optimism over US-China trade talks and better-than-expected China manufacturing data, which on Monday drove Tokyo up 1.4 percent, Hong Kong by 1.8 percent and sent Shanghai soaring 2.6 percent.
Sydney added 0.6 percent, Singapore jumped 0.9 percent and Seoul piled on 1.3 percent, with Taipei, Mumbai, Bangkok, Jakarta and Wellington also in the green.
Top negotiators from China and the US have flagged progress in last week’s discussions in Beijing and another round of talks are slated this week in Washington.
While there have been few details, the general view on trading floors is that the economic superpowers are heading towards a deal that will end a long-running spat that helped sink global markets towards the end of last year.
Beijing announced it would extend a delay on imposing tariffs on US cars while also adding fentanyl to a list of controlled substances — two key concessions to Washington that have added to hopes for the trade deal.
Back in Manila, sectoral indices finished lower with mining and oil down the most by 3.33 percent. The sole exception was the industrial index that gained 0.08 percent.
More than 684 million shares valued at P5.5 billion were traded.
Losers led winners, 120 to 65, while 55 issues remained unchanged.
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