STOCKS declined on Wednesday ahead of the release of the country’s first-quarter gross domestic product (GDP) and the US inflation data, and amid the initial count of the election results.
The benchmark Philippine Stock Exchange index (PSEi) slumped by 85.07 points or 1.26% to close at 6,635.86 on Wednesday, while the broader all shares index sank by 26.65 points or 0.74% to close at 3,557.97.
“Philippine shares slipped ahead of first quarter GDP tomorrow and the US CPI (consumer price index) reading scheduled tonight,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The country’s first-quarter GDP data will be released on Thursday.
A BusinessWorld poll of 17 economists conducted last week yielded a GDP growth median estimate of 6.7% for the first three months of 2022.
If the report confirms the estimate, the economy would be turning around from the 3.8% decline logged in the January-March period last year, but still lower than the revised 7.8% growth in the fourth quarter.
“We attribute the expansion in output to favorable base effects and election spending, but surging inflation during the period could have weighed on growth momentum,” Mr. Limlingan said.
Meanwhile, Papa Securities Corp. Equities Strategist Manny P. Cruz said that investors were still cautious after the election results.
“Local stocks continued to falter amid foreign sell-offs. Market participants remained on a defensive stance as they wait for the economic policies of the next administration particularly, on how they will deal with rising inflation and bringing the national debt to more manageable levels,” he said in a Viber message.
The victory of Ferdinand “Bongbong” R. Marcos, Jr., the son and namesake of the former dictator, looked certain when results of the unofficial tally came in. With 95% of the eligible ballots counted, he had more than 30 million votes, double that of Vice-President Maria Leonor “Leni” G. Robredo.
He is poised to return to Malacañang Palace 36 years after his father was ousted during the People Power Revolution in 1986, also becoming the first candidate in recent history to win a Philippines presidential election majority.
An official result is expected around the end of the month.
Majority of the indices ended in the red on Wednesday, except for mining and oil, which gained by 281.95 points or 2.63% to 10,999.39, and services, which rose by 8.94 points or 0.47% to 1,887.50.
Meanwhile, holding firms fell by 159.41 points or 2.53% or 6,139.35, property gave up by 40.47 points or 1.34% to 2,960.60, industrials contracted by 93.66 points or 1% to 9,204.18, and financials went down by 0.53 point or 0.03% to 1,611.41.
On Wednesday, the MidCap index advanced by 12.29 points or 1.15% to 1,083.77 and the Dividend Yield index gained 0.23 point or 0.01% to close at 1,584.24.
Decliners beat advancers, 103 versus 97, while 48 names ended unchanged.
Value turnover decreased to P6.64 billion with 1.92 billion shares changing hands from P23.19 billion with 3.17 billion issues seen on Tuesday.
Net foreign selling dropped to P441.63 million from P1.08 billion seen on the previous trading day. — Luisa Maria Jacinta C. Jocson