The benchmark Philippine Stock Exchange index (PSEi) dropped by 3.5 percent on Friday, as investors took their profits amid the recent announcement that the Philippine economy contracted by 9.5 percent in 2020, and the US Federal Reserve’s head warning that the US economy faces a long road to recovery.
Investors were also bugged by surging cases of coronavirus disease 2019 (Covid-19) cases in the country.
The benchmark Philippine Stock Exchange index (PSEi) shed 239.22 points or 3.49 percent to finish at 6,612.62 on Friday, while the all shares index slid by 101.01 points or 2.45 percent to close at 4,007.33.
“Local shares traded slightly negative as the final print of 2020 GDP (gross domestic product) showed a slower contraction. However, many opted to sell after the US Fed’s message did not sit well within investors,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.
The US economy contracted by 3.5 percent for full-year 2020, making investors nervous on the recovery of the world’s biggest economy this year.
The Federal Open Market Committee (FOMC) also kept the Federal Reserve’s funds rates target range to between 0 to 0.25 percent, with monetary authorities saying the pace of economic recovery has “moderated in recent months.”
Most of the sectoral gauges also finished the day in the negative territory, led by the Mining and Oil index, which declined by 2.17 percent.
It was trailed by Services, 1.43 percent; Industrial, 0.48 percent; and Financials, 0.39 percent.
On the other hand, both the Holding Firms and Property indexes rose by 0.09 percent.
Volume totaled 56.22 billion shares amounting to P8.8 billion.
Losers led gainers at 136 to 73, while 53 shares were unchanged. SOVEREIGNPH