SHARE prices on the Philippine Stock Exchange declined in reaction to the lower-than-expected gross domestic product (GDP) data on Thursday, on the heels of losses overnight on Wall Street.
The Philippine Statistics Authority (PSA) reported a slower GDP growth of 6.4 percent in the first quarter, the slowest since the fourth quarter of 2015 and compares with 6.6 percent in the fourth quarter of 2016 and 6.8 percent in the first quarter of the same year.
As of 2:13 p.m., the benchmark PSEi was down 1.19 percent or 93.22 points at 7,733.31. All Shares declined by 0.87 percent or 40.61 points to 4,612.40.
Socioeconomic Planning Secretary Ernesto Pernia noted the absence of election-related spending. “Growth last year was high due to election spending, impact of which has already dissipated,” Pernia said.
The market was also affected by negative sentiment on Wall Street. “It was primarily due to the heavy decline of the US market, then secondly the slightly weaker GDP,” COL Financial Sales Vice President Juanis Barredo said.
The Dow Jones Industrial Average (DJIA) shed 370 points, with Goldman Sachs contributing the most to the decline. The S&P 500 dropped 1.8 percent.