Stocks slip ahead of GDP report; peso strengthens

Business & Finance

The main equities index slipped anew on Wednesday ahead of the release of the first-quarter domestic economic growth, but the peso gained against the US dollar.

The Philippine Stock Exchange index (PSEi) shed 1.27 percent, or 85.07 points, to 6,635.86 points.

All Shares followed with a drop of 0.74 percent, or 26.65 points, to 3,557.97 points.

Most of the sectoral indices also ended the day in the negative territory namely Holding Firms, 2.53 percent; Property, 1.35 percent; Industrial, 1.01 percent; and Financials, 0.03 percent.

On the other hand, Mining and Oil rose by 2.63 percent and Services by 0.48 percent.

Volume reached 1.92 billion shares amounting to PHP6.64 billion.

Decliners surpassed advancers at 103 to 97, while 48 shares were unchanged.

Aside from the first-quarter 2022 gross domestic growth (GDP) report scheduled to be released on Thursday, another factor that investors are waiting for is the release of US’ April 2022 consumer price index (CPI) report, said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.

RCDC forecasts a 7-percent growth for the domestic economy in the first three months this year, slower than the revised 7.8 percent print in the previous quarter. It has a preliminary report of 7.7-percent growth.

“We attribute the expansion in output to favorable base effects and election spending, but surging inflation during the period could have weighed on growth momentum,” Limlingan said.

Meanwhile, the local currency finished the day at 52.275 from the previous day’s 52.37.

It opened the trade at 52.32, an improvement from the previous session’s 52.499.

It traded between 52.35 and 52.222, bringing the day’s average to 52.267.

Volume reached USD898.9 million, higher than Tuesday’s USD691.6 million.

Source: Philippines News Agency

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