PHILIPPINE shares slumped on news that the economy grew slower than expectations and as US markets traded on a weak note overnight.
The benchmark PSEi declined by 0.88 percent or 68.84 points to close at 7,757.69. It declined by more than 1 percent during the morning session. The wider all shares tumbled by 0.57 percent or 26.59 points to 4,626.42.
“GDP is one of it, but the most important is the US market was down by quite a big number,” said Harry Liu, president of Summit Securities Inc.
The Dow Jones Industrial Average shed 370 points overnight and the S&P 500 declined by 1.8 percent.
The Dow Jones went down by 1 percent overnight due to political jitters, said Astro del Castillo, managing director of First Grade Inc. The slower growth rate triggered a sell-off, he said.
The Philippine Statistics Authority reported the economy expanded by 6.4 percent from 6.9 percent a year earlier. It was the slowest in five quarters since it posted 6.3 percent the fourth quarter of 2015.
“The GDP number definitely had an impact. Government’s confident 7 percent projection only made the perception worse. For our part, it was in line with our forecast,” Philstocks Financial Inc. senior research analyst Justino Calaycay Jr. said.
All sectoral indices were in the red, led by property index at 1.57 percent.
Among the actively traded stocks, Ayala Land Inc. was down 2.72 percent, Jollibee Foods Corp. declined by 2.44 percent, International Containter Terminal Services Inc. lost 1.51 percent and BDO Unibank Inc. retreated by 1.39 percent.