By Leslie D. Venzon
MANILA, May 27 (PNA) — Local share prices fell to their lowest in four months, tracking the downturn in the United States market, ahead of the release of the country’s first-quarter economic output.
The benchmark Philippine Stock Exchange index (PSEi) lost 129.80 points or 1.68 percent to 7,598.70 from the previous day’s 7,728.50 close.
It was the market’s weakest close since closing at 7,586.67 on January 26.
”(The) revision in the four-quarter GDP and lower Wall Street contributed to today’s losses,” said Jonathan Ravelas, Banco de Oro chief market strategist.
The Philippine Statistics Authority reported that the 2014 fourth-quarter gross domestic product (GDP) growth figure was revised from 6.9 percent to 6.6 percent due to downward revisions in trade, other services and electricity, gas and water supply.
”Overnight decline in US markets, more certainty in interest rate hike this year (pulled down the market). Net foreign selling has been consistent probably in anticipation of rate hike,” said Nisha Alicer, chief equity analyst at DA Market Securities Inc.
Alicer said it was also possible that investors wanted to stay on the sidelines ahead of GDP data release on Thursday.
All counters were in negative territory, led by mining and oil that plunged 3.17 percent and industrial that lost 2.78 percent.
Volume of transactions reached 1.36 billion shares valued at Php7.09 billion.
Decliners swamped advancers, 137 to 45, while 40 issues were unchanged.
Share prices of top active issues also declined, led by Metropolitan Bank & Trust Company, Universal Robina Corp., GT Capital Holdings Inc. and SM Prime Holdings Inc. (PNA)