Following on from the International Monetary Fund lowering its growth forecast for the Philippines in 2024 from 6.2% to 6%, share prices once again dipped.
Indeed, the benchmark Philippine Stock Exchange index fell by 0.75% or 48.57 points, ending in the red for the second straight day at 6,410.07 on Tuesday.
The broader All Shares index also closed in negative territory, down by 0.50% or 17.19 points at 3,450.05.
Mikhail Plopenio, a research and engagement officer at Philstocks Financial, said that the local market declined as investors reacted to the IMF's downwardly revised forecast for the Philippines' economic growth this year, following the slower-than-expected GDP data in the first quarter of this year.
“Adding to the woes was the foreign outflow of P742.96 million as foreigners were net sellers during Tuesday's session,” Plopenio commented.
“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 went on to add.
There was no trading on the Philippine Stock Exchange on Wednesday due to the observance of Independence Day.
Furthermore, sectoral indices experienced declines yesterday, with services, mining and oil, and property sectors each dropping by more than 1%, The Philippine Star reports.
Additionally, market breadth stayed negative as decliners outnumbered advancers, with 99 stocks declining compared to 82 advancing, while 43 issues remained unchanged.
Leading the index members was Alliance Global Group with a 4% increase, whilst the biggest loss was recorded by Universal Robina Corp. at 2.94%.