The local stock market plunged after the government reported slower-than-expected growth for the Philippine economy and Donald Trump won the US presidential race.
The main index fell by 150.98 points, or 2.11 percent, to close at 7,014.44, with the Property sector still leading the decline, while the Services counter managed to hold its ground. Volume surged to 1.1 billion, worth P9.72 billion, as losers outnumbered gainers 167 to 46, with 40 unchanged.
“Philippine shares slid anew as the third quarter gross domestic product figures came in much lower than expected at just 5.2 percent. Though private consumption continued to pick up, fixed investment and government consumption weakened, and exports further declined,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Meanwhile, US stocks rallied sharply on Wednesday, with major benchmarks hitting record highs following Trump's victory in the 2024 presidential election. However, Limlingan noted that investors in the Philippines “grew anxious as Trump’s second-term win spurred selling on the PSEi, pushing it into negative territory.”
Philstocks Financial Research Manager Japhet Tantiangco said, “The local market plunged this Thursday as investors priced in the negative implications of US protectionist policies on the global economic outlook following Mr. Donald Trump’s victory in the US presidential race.”
“Also weighing on investors’ sentiment was the slowdown in the Philippines’ third quarter GDP growth to 5.2 percent and the weakening local currency,” he noted.