PHILIPPINE shares succumbed on the last trading day of the week after Standard & Poor Global Ratings earlier downgraded its gross domestic product (GDP) outlook for the Philippines.
The bellwether PSEi index shed 50.95 points on Friday or 0.64 percent to finish at 7,885.90. The broader All Shares lost 17.90 points or 0.38 percent to finish at 4,735.82.
“Investors cashed in on gains after S&P’s lower-than-expected 2017 GDP outlook to 6.4 percent from the 6.6-percent previous estimate,” IB Gimenez Securities research head Joylin Telagen said.
“I think most investors want to see how fiscal reforms and policy improvements will affect the Philippine growth story. So it’s a challenge to the administration to put these promised reform and policies forward,” she added.
The international debt watcher on Thursday slashed its GDP outlook for the Philippines without explanations.
Summit Securities Inc. President Harry Liu however said investors sold off with the lack of market-moving news that could push the index above the 8,000 resistance level.
“The market tried to go the 8,000 [level]but it succumbed to the resistance again. Basically it just showed that there is nothing negative, nothing positive that is happening,” Liu said. “It is just moving sideways.”
He said the market would only break through the resistance once the government implements its comprehensive tax reform program, and the crisis Marawi City is resolved.
Likewise, Regina Capital Development Corp. President Marita Limlingan said: “Philippine markets dropped due to lack of marker-making catalysts and difficulty in breaking past critical resistance levels of 7,950 and 8,000 respectively.”
Nearly all sectoral indices were in the red. Property went down by 1.13 percent, followed by financials (-0.86 percent), holding firms (-0.47 percent), industrials (-0.13 percent), and mining and oil (-0.11 percent). Services was the sole gainer, going up by 0.11 percent on Friday.
Among the most actively traded issues, Lucio Tan’s LT Group Inc. was the top gainer at 7.45 percent, while the Metropolitan Bank and Trust Co. fell by 2.44 percent.
Over 2.5 billion issues changed hands, valued at P7.48 billion.
Market breadth was negative, as decliners outnumbered gainers, 104 to 94, while 54 issues were unchanged.