PSEi slips as foreigners pull out funds after recession

Philippine share prices ended the week in the red on Friday as foreign players pulled out funds in the local market in reaction to the Philippines’ worst economic performance since 1981 and its fall into recession.

The bellwether PSEi lost 56.58 points or 0.96% to 5,846.02 at the closing bell. The broader All Shares shed 18.08 points or 0.52% to 3,467.53.

“Local shares were sold off as foreign funds reacted late towards the second quarter reading of GDP (gross domestic product) which came in weaker than expected,” Regina Capital Development head of sales Luis Limlingan said.

The country’s GDP contracted 16.5% in the second quarter, its worst on record in almost four decades, as strict lockdown measures to arrest COVID-19’s spread weighed on business activities.

Foreigners sold P8.760 billion worth of shares and bought P1.982 billion for a net selling position of P6.777 billion.

More than 5.267 billion shares valued at P10.922 billion, changed hands. Advancers led decliners, 113 to 82, and 46 issues were unchanged. — Ted Cordero/RSJ, GMA News