Philippine stocks inch down on GDP report, tariff fears

Philippine edged lower on Thursday to end a four-day climb as the market reacted to second-quarter gross domestic product (GDP) data and amid renewed tariff concerns following fresh threats from US President Donald J. Trump.

The bellwether Philippine Stock Exchange index (PSEi) slipped by 0.09% or 5.96 points to close at 6,364.69, while the broader all shares index went down by 0.1% or 3.90 points to end the trading session at 3,776.06.

“The local market declined this Thursday… as investors digested our second quarter GDP data. Economic growth came in at 5.5%, posting a marginal improvement from the prior quarter’s 5.4% and slower than the same period last year’s 6.5%,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi closed at 6,364.69, down by 0.09%, as the market absorbs the recent GDP news. Some investors might have expected stronger results following the solid performance of the agriculture sector,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The second-quarter GDP expansion matched the 5.5% median forecast in a BusinessWorld poll of 17 economists as well as the lower end of the government’s 5.5%-6.5% target for this year.

For the first half, Philippine economic growth averaged 5.4%, a tad below the government’s goal.

“US President Donald J. Trump’s plan to impose 100% tariffs on semiconductor and chip imports except for firms producing in the US also weighed on market sentiment,” Mr. Tantiangco added.

“Moreover, several companies released their earnings today, impacting both the index and the broader market,” Mr. Limlingan said.

Majority of sectoral indices closed lower on Thursday. Industrials sank by 1.52% or 139.68 points to 9,010,54; holding firms went down by 1.38% or 73.84 points to 5,277.65; property retreated by 0.24% or 5.83 points to 2,417.14; and mining and oil slipped by 0.53 point to 9,210.04.

Meanwhile, services climbed by 2.04% or 46.77 points to 2,329.05; and financials went up by 0.61% or 13.57 points to 2,204.3.

“International Container Terminal Services, Inc. was the top index gainer, climbing 2.7% to PHP 494. Monde Nissin Corp. was the main index laggard, plunging 9.81% to PHP 7.17,” Mr. Tantiangco said.

Value turnover went down to PHP 6.27 billion on Thursday with 685.52 million shares traded from the PHP 6.78 billion with 664.92 million issues exchanged on Wednesday.

Decliners outnumbered advancers, 124 versus 73, while 42 names were unchanged.

Net foreign buying decreased to PHP 153.38 million on Thursday from PHP 211.85 million on Wednesday. — Revin Mikhael D. Ochave