Manila: Local stocks and the peso both weakened on Monday, following the World Bank’s downgrade of its economic growth outlook for the Philippines. The Philippine Stock Exchange index (PSEi) closed 0.31 percent lower at 6,249.50, while the broader All Shares index slipped 0.40 percent to 3,681.09.
According to Philippines News Agency, sectoral performance was mixed. Gainers included Services, which rose 1.33 percent; Property, up 0.24 percent; and Holding Firms, which edged higher by 0.11 percent. Meanwhile, Financials dropped 1.86 percent, Mining and Oil fell 0.86 percent, and Industrials dipped 0.28 percent. Losers outnumbered winners at 98 to 94, leaving 58 firms unchanged.
“This is after the World Bank reduced its estimates for Philippine GDP (gross domestic product) growth,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said. Last week, the World Bank revised its GDP growth forecast for the Philippines this year to 5.3 percent from its 6.1 percent outlook announced in January, mirroring the easing global economic activity.
Meanwhile, the Philippine peso also closed weaker against the US dollar, shedding 0.15 to end at 56.42 to the dollar from a 56.270 finish last Friday. Although the peso opened stronger at 56.28 from a kick-off of 56.38 to the dollar, the currency pair traded between as high as 56.47 and a low of 56.24, bringing the average level for the day to 56.33 to the greenback. Trade volume for the day also decreased to USD1.57 billion from USD1.85 billion in the previous trading.
