PSEi plunges ahead of GDP data release

Share prices on the Philippine Stock Exchange (PSE) plunged by over 2% on Monday, as the market started to factor in the expected weak economic data scheduled for release later this week.

The main PSEi dropped 128.62 points or 2.26% to 5,572.09 at the closing bell. The broader All Shares shed 59.52 points or 1.73% to 3,386.30.

According to Timson Securities Inc. equity analyst Jervin de Celis, the market started to price in economic data scheduled to be released by the Philippine Statistics Authority (PSA) this week.

Data to be out this week include April inflation and March manufacturing on Tuesday, March trade data and first-quarter agriculture performance on Wednesday, and first-quarter economic growth on Thursday.

"I think that's what's the market is pricing in in its performance today because the lockdown is expected to result to a dismal figure for the 1Q PH GDP," said de Celis.

The Philippine metropolis Metro Manila, along with several high-risk areas, has been on lockdown since March 17, with the enhanced community quarantine in the area extended twice until May 15.

"Market sentiment also seems negative too across other markets in Asia especially our neighboring countries as they fell today," said de Celis.

More than 522.399 million shares, valued at P5.107 billion, changed hands. Decliners led advancers, 150 to 46, and 34 issues were unchanged.—AOL, GMA News