Economic worries drag PSEi by 0.55%

Share prices on the Philippine Stock Exchange retreated on Friday as investor sentiment was dragged by concerns on the economic impact of the COVID-19 pandemic.

The benchmark PSEi shed 31.22 points or 0.55% to 5,621.94 at the closing bell. The broader All Shares lost 1008 points or 0.30% to 3,403.80.

“The local bourse shed 31.22 points today, closing at 5,621.94 as economic woes weighed on investors sentiment,” Philstocks Financial equity analyst Japhet Tantiangco said.

“The contraction in first quarter GDP, the expectation of a deeper decline in the second quarter economy, and the downgrade in Fitch Ratings Outlook compelled investors to unload shares in today’s trading,” Tantiangco said.

The Philippine economy contracted by 0.2% in the first quarter of 2020, the first contraction in gross domestic product since 1998. 

Acting National Economic and Development Authority Secretary Karl Chua said the economy might plunge deeper in the second quarter, considering the full effect of the enhanced community quarantine during the period. 

Credit watcher Fitch Ratings downgraded its outlook on the Philippines back to “stable” from “positive,” reflecting expected near-term deterioration of the country’s macroeconomic and fiscal situation resulting from the impact of the global pandemic and domestic lockdown to contain the spread of the virus. 

Net foreign outflows stood at P771.19 million pesos, which added to the selling pressure, according to Tantiangco.

More than 470.943 million shares valued at P5.860 billion, changed hands. Decliners led advancers, 90 to 75, and 55 issues were unchanged. — RSJ, GMA News