Philippines share prices closed 1.1 percent lower on Thursday after data showed economic growth slackened in the first quarter, worse than many economists had expected, dealers said. Gross domestic product for the quarter grew at 5.2 percent from a year earlier, hit by the slowdown in the United States which led to weak exports while soaring food and energy prices hurt consumer spending.
The composite index fell 31.05 points to 2,802.22, its lowest closing level since May 9 when it finished at 2,779.42. The all-share index was down 14.68 points at 1,731.18. There were 78 decliners and 18 advancers, while 59 were steady. The government revised down its initial growth estimate for the previous quarter from 7.4 percent to 6.4 percent.
"The number tells us that the economy is suffering from the current global slowdown led by the US," said Simon Wong, economist at Standard Chartered Bank in Hong Kong. "With this, we see the Philippine economy growing at just 4.0 percent for the full year as exports will further contract. The downturn in the US is only the beginning of a bigger slowdown," said Wong.
Astro del Castillo of First Grade Holdings said: "The data is not surprising. "Economists are going back to the drawing board given the unpredictable rise in prices of oil and other commodities. "The economy won't get any better in the second quarter," he said.
Most blue chips ended in negative territory, with Philippine Long Distance Telephone down 1.2 percent at 2,580 pesos.San Miguel A fell 1.2 percent to 42 pesos. Its B shares slipped 1.2 percent to 42.50 pesos.