IMF's weak growth target for Philippines dampens stocks

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Share prices fell anew as investors digested the International Monetary Fund (IMF)'s lower growth forecast of six percent from 6.2 percent for the Philippines this year.

The benchmark Philippine Stock Exchange index dropped by 0.75 percent or 48.57 points, ending in the red for a second consecutive day at 6,410.07.

Also closing in the negative territory was the broader All Shares index, which declined by 0.50 percent or 17.19 points at 3,450.05.

Philstocks Financial research and engagement officer Mikhail Plopenio said the local market slipped as investors took into account the IMF's downward revision of its projection for the Philippines' economic growth for this year after the slower-than-expected first quarter 2024 GDP data.

'Adding to the woes was the foreign outflow of P742.96 million as foreigners were net sellers during Tuesday's session,' Plopenio said.

'Investors also took a cautious stance ahead of the local holiday. As a result, net market value turnover remained tepid at P3.14 billion, lower than the year-to-date average of P5.07 billion,' he said.

There will be no trading on the Philippine Stock Exchange today in observance of Independence Day.

Sectoral gauges were covered in red yesterday, with services, mining and oil and property plunging by more than one percent each.

Market breadth remained negative as decliners edged out advancers, 99 to 82, while 43 issues were unchanged.

Alliance Global Group led the index members as it rose by four percent, while Universal Robina Corp. posted the biggest loss at 2.94 percent.