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PSEi slides to 7,800 on China GDP, Brexit deal

 

THE stock market ended weaker on Friday after trading sideways for days, slipping from the 7,900 level on news that China’s economic growth slowed and the United Kingdom achieved a breakthrough in its effort to leave the European Union.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.57 percent or 45.32 points to end at 7,885.23, while the wider All Shares fell by 0.33 percent or 15.89 points to finish at 4,755.04.

 


“The slower-than-expected third-quarter China GDP (gross domestic product) growth data sent local stocks lower,” Philstocks Financial Inc. said in a market comment.

Growth in the world’s second-biggest economy decelerated to 6.0 percent in the third quarter from 6.2 percent in the second, according to China’s National Bureau of Statistics.

The latest reading is the East Asian country’s worst quarterly figure since 1992, but within the government’s target range of 6.0-6.5 percent for the whole year. The economy grew 6.6 percent in 2018.

Analysts said China’s GDP had been decelerating since last year because of its long-standing trade war with the US.

Meanwhile, Regina Capital Development Corp. head of sales Luis Limlingan said local “stocks traded quietly, with a tentative Brexit deal between the UK and EU seen reducing risk.”

Leaders of the European bloc may have endorsed the withdrawal agreement on Thursday, but British Prime Minister Boris Johnson faces an uphill battle getting it through his country’s parliament, which must ratify it.

Opposition parties and some of the premier’s own allies in the House of Commons have warned that they would not support the deal when it goes to a vote in a special sitting on Saturday.

On Wall Street, the Dow Jones, S&P 500 and Nasdaq climbed by 0.09 percent, 0.28 percent and 0.40 percent, respectively.

Asian markets were mostly down. Shanghai fell 1.32 percent, Hong Kong dropped 0.60 percent, Seoul declined 0.83 percent, Singapore dipped 0.34 percent, Thailand lost 0.20 percent and Vietnam slid 0.06 percent. Tokyo grew 0.18 percent and Jakarta gained 0.17 percent.

In Manila, all sectors ended in the red, except for services, which rose 0.30 percent.

Volume turnover stood at 830.78 million valued at P5.47 billion.

Winners led losers, 89-83, while 46 issues were unchanged.

TYRONE C. PIAD WITH REPORTS FROM AFP

 

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