PH stocks lower in morning trade on disappointing data
PHILIPPINE shares fell in early trading on Monday as investors factored in the unfavorable macroeconomic data last week, with some also rebalancing their portfolios given the start of ghost month.
The benchmark Philippine Stock Exchange index dropped 152.99 points or 1.96 percent at 7,651.99 at the close of morning trade while the broader All Shares declined 65.97 points or 1.40 percent to 4,648.72.
Philstocks Financial, Inc. research analyst Piper Chaucer Tan said investors have started to price in disappointing economic results such as the slower economic growth in the second quarter, higher inflation, and the Bangko Sentral ng Pilipinas’ (BSP) interest rate hike.
The Monetary Board last week raised the central bank’s key rates by 50 basis points after inflation spiked to 5.7 percent in July. Also last week, the government announced that economic growth slowed to 6.0 percent in the second quarter from 6.6 percent in the first quarter and 6.7 percent a year earlier.
“Also, it is the start of the ghost month, which will reflect a decrease in [trading]volume,” Tan said.
In the Chinese lunar calendar, ghost month is when investors are supposed to hold off from making big-ticket investments. Buddhist and Taoist beliefs hold that restless spirits cause mischief during the period.
All sectoral results were in the red led by holding firms, which retreated 2.47 percent. ANGELICA BALLESTEROS
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