Shares decline as market digests economic growth print

By Arra B. Francia, Reporter
SHARES SLUMPED on Friday as investors continued to sell their holdings after the slower third-quarter gross domestic product (GDP) growth data released on Thursday.
The 30-member Philippine Stock Exchange index lost 0.95% or 66.89 points to close at 6,968.82 on Friday. The broader all shares index also gave up 0.46% or 19.99 points to 4,269.88.
“Negative sentiment from EPHE (iShares MSCI Philippines ETF) dropping 2.6% last night following the disappointing 3Q18 GDP figure may have affected today’s movement. Net foreign selling also remains to be a significant factor with today’s value of P598 million,” P2P Trade Online Sales Associate Gabriel Jose F. Perezo said in an e-mail on Friday.
The EPHEs track the investment results of a broad-based index consisting of local stocks.
Listed telco players continued to take a hit from the third player race, with incumbents Globe Telecom, Inc. and PLDT, Inc. listed as two of the day’s biggest losers. The former dropped 5.21% to P1,728 each, while the latter tumbled 4.98% to P1,220 apiece.
In contrast, ISM Communications Corp. — which could be businessman Dennis A. Uy’s vehicle for the third telco player — was the most actively traded, gaining 7.94% to P6.80.
Regina Capital Development Corp. Managing Director Luis A. Limlingan meanwhile attributed the decline to the US Federal Reserve’s hint at another rate hike despite keeping borrowing costs steady at its recent meeting.
“Philippine shares slid after the FOMC (Federal Open Market Committee) meeting gave a signal to investors of another rate hike,” Mr. Limlingan said in a mobile message, further attributing the drop to some rebalancing after companies released their nine-month earnings results.
Wall Street’s major indices ended mostly lower overnight, with the S&P 500 index dropping 0.25% or 7.06 points to 2,806.83 while the Nasdaq Composite index shed 0.53% or 39.87 points to 7,530.89. The Dow Jones Industrial Average managed to eke out gains, adding 0.04% or 10.92 points to 26,191.22.
Back home, all sectoral indices moved to negative territory, led by services which fell 2.03% or 28.8 points to 1,383.58. Financials followed with a 1.21% or 19.34-point decrease to 1,572.53, while industrials slipped 1.03% or 110.68 points to 10,577.25. Property shed 0.79% or 27.3 points to 3,390.46. Mining and oil dipped 0.28% or 25.82 points to 9,120.22.
Some 1.17 billion issues switched hands, resulting in a turnover of P5.96 billion, down from Thursday’s P8.39 billion.
Advancers outpaced decliners, 105 to 84, while 53 issues ended flat.
Foreign outflows persisted but dropped to P598.19 million on Friday from the previous session’s P668.31 million.
“With the index continuing to remain weak and with the ever-present net foreign selling, we place our initial support level to the PSEi’s recent low of 6,790,” P2P Trade’s Mr. Perez said.