THE MAIN INDEX sank to the 6,100 level on Monday, hitting a seven-month low, as investors were cautious before the release of Philippine gross domestic product (GDP) data and the US Federal Reserve’s policy meeting.
The Philippine Stock Exchange index (PSEi) fell by 1.57% or 99.32 points to close at 6,196.88 on Monday, while the broader all shares index slumped by 1.12% or 41.49 points to end at 3,639.85.
This was the PSEi’s lowest close and first time to end at the 6,100 level in more than seven months or since its 6,158.48 finish on June 21, 2024.
“The local market declined as investors took a cautious stance while waiting for the Philippines’ 2024 GDP data and the Fed’s policy meeting, both of which are set this week,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Expectations that the local economy was unable to hit the government’s growth target last year weighed on the market.”
The Philippine Statistics Authority will release fourth-quarter and full-year 2024 GDP data on Jan. 30 (Thursday).
A BusinessWorld poll of 18 economists and analysts yielded a median estimate of 5.8% for fourth-quarter GDP growth, faster than 5.2% in the third quarter and matching the 5.8% expansion in the same quarter in 2023.
The poll also yielded a median growth forecast of 5.7% for full-year 2024, below the government’s revised 6-6.5% goal. Still, this would be faster than the 5.5% economic expansion logged in 2023.
Philippine GDP growth averaged 5.8% in the first nine months of 2024. National Economic and Development Authority Secretary Arsenio M. Balisacan last week said that economic growth in 2024 may have fallen short of the government’s target due to the typhoons that hit the country in the fourth quarter.
Meanwhile, the Fed will hold its first policy meeting for the year on Jan. 28-29, where it is widely expected to keep rates unchanged for the first time since September amid renewed inflation concerns.
“Philippine shares fell below the 6,200 level as the market braces for a shortened trading week with more key economic indicators ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. Philippine markets are closed on Jan. 29 (Wednesday) for the Lunar New Year.
All sectoral indices closed in the red on Monday. Industrials sank by 2.07% or 183.42 points to 8,679.54; holding firms dropped by 1.98% or 105.90 points to 5,235.02; mining and oil decreased by 1.62% or 126.78 points to 7,686.99; services retreated by 1.49% or 30.71 points to 2,029.68; property went down by 1.29% or 29.88 points to 2,277.76; and financials slumped by 1.18% or 25.59 points to 2,140.19.
Value turnover rose to P5.44 billion on Monday with 1.14 billion shares traded from the P4.74 billion with 1.14 billion issues exchanged on Friday. Decliners outnumbered advancers, 118 versus 68, while 48 names were unchanged.
Net foreign selling declined to P322.39 million on Monday from P1.12 billion on Friday. — Revin Mikhael D. Ochave
