PSEi slumps 1.38% on weak investor sentiment

The Philippine Stock Exchange index plunged Friday as a weak global investor sentiment overshadowed any good tidings brought by positive prospects of the country's gross national product (GNP) growth this year. "Domestic or foreign investor sentiments have not yet been boosted despite bullish prospects on the country's gross national product growth," said trader Emmanuel Soller of Equitiworld Securities Inc. The PSEi slumped 55.20 points or 1.38 percent to close at 3,951.04, according to the PSE's online market information as of 12:10 p.m. Value turnover reached P4.832 billion, with more than 1.429 billion shares changed hands. Decliners outnumbered advancers 101 to 43, with 42 issues remained unchanged. The Trade Department crafted a 2011 roadmap that will allow the country to achieve a 10-percent GNP expansion this year via creating a million jobs annually until 2016. Soller pointed out that economic figures "are pointing upwards," fueled in part by the continuous influx of hot money to the Philippines. Central bank records showed that foreign portfolio investments hit a record of $4.61 billion last year, almost 12 times more than the $388.02 million posted in 2009. Soller said that global fund managers will continue to pour in capital funds to the Philippines. "Investor confidence is still there. Fund managers' concentration is still in Asia," he said, adding that investors are primarily looking at China and South Korea as best investment locations in the region. Soller said that investors are most likely waiting for the corporate earnings results of listed companies and the gross domestic product growth figures of the Philippines to lift market sentiments. The government is scheduled to release the economic growth figures of the Philippines on Jan. 31. — JE/OMG, GMANews.TV