PSEi extends decline due to weak economic outlook

THE MAIN INDEX ended lower for the seventh straight session on Thursday after a global think tank said the Philippine economy is expected to grow slower than the government’s targets between 2024 and 2028.

The Philippine Stock Exchange index (PSEi) on Thursday fell 0.33% or 21.47 points to close at 6,344.56, while the broader all-stock index rose 0.05% or 1.85 points to close at 3,440 ,31.

“Economist Impact Asia Pacific’s forecast that the Philippine economy will grow below the government’s target through 2028 weighed on sentiment,” Philstocks Financial, Inc. research analyst Claire T. Alviar said. in a Viber message.

Andrew J. Staples, Asia-Pacific head of thought leadership and public policy at global think tank The Economist Impact, said Wednesday that they expect the Philippine economy to grow 5.4% this year, below the gross domestic product of 6- 7% from the government. GDP) growth target for the year. It will also be slightly lower than the revised GDP growth of 5.5% in 2023.

For 2025, Mr. Staples said Philippine GDP is expected to grow 6.4%, slightly lower than the government’s target of 6.5-7.5%. He expects GDP growth to slow to 5.6% in 2026 and 5.9% in 2027 and 2028, also below the target of 6.5-8% until 2028.

“The local stock market lost its early momentum and ended in negative territory for the seventh consecutive session. The lack of catalysts to boost investor sentiment contributed to the decline in the benchmark index,” said Luis A. Limlingan, chief sales officer of Regina Capital Development Corp. in a Viber message.

“The local stock market fell in the absence of new cues to drive the market higher… Investors are looking for clear direction on interest rates amid mixed signals, forcing them to wait for the next policy meeting despite expectations that the BSP (Bangko Sentral ng Pilipinas) will win.” I have not lowered the interest rate,” Ms Alviar added.

The BSP will next meet on June 27 to review the policy.

The Monetary Board has kept its benchmark interest rate steady at a 17-year high of 6.5% since October 2023, after hikes worth 450 basis points to reduce inflation.

Most sector indices closed lower on Thursday. Services fell by 0.68% or 13.34 points to 1,945.59; financial services fell 0.68% or 13.33 points to 1,921.53; real estate fell by 0.48% or 11.93 points to 2,426.32; and industrials fell 0.3% or 27.48 points to 8,939.10.

Meanwhile, mining and oil rose 1.6% or 140.48 points to 8,889.54, and holdings rose 0.37% or 21.19 points to 5,619.52.

Value turnover fell to P3.94 billion on Thursday, with 328.28 million shares changing hands from P4.07 billion, while 363.03 million shares were traded on Wednesday.

The advanced players defeated the decliners, 92 to 86, while 58 names closed unchanged.

Net foreign sales fell to P552.19 million on Thursday from P594.67 million on Wednesday. — RMD Ochaaf