PSEi slips again on profit-taking, weaker factory activity

The stock barometer welcomed December in negative territory as local manufacturing activity sank to its lowest level in over four years, while investors took profits ahead of the release of November inflation print.

The Philippine Stock Exchange Index (PSEi) ended lower by 0.55 percent, or 32.95 points, to finish at 5,989.29.

The broader All Shares also fell by 0.69 percent, or 24.56 points, to 3,543.78.

Mining and oil, and services still posted wins on the first trading day, while the conglomerates recorded a 1.88-percent drop.

Trading was tepid with net value turnover at P5.81 billion.

“The local market pulled back as investors digested the Philippines’ dismal November manufacturing data,” said Philstocks financial research manager Japhet Tantiangco.

Based on S&P Global’s survey of around 400 companies, the Philippines’ Purchasing Managers’ Index (PMI) declined to 47.4 from 50.1 in October, marking the “strongest deterioration” in manufacturing conditions since August 2021 as the sector saw softer customer demand.

Production also fell following disruptions from the bad weather brought by typhoons.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the dip in the PSEi “came despite expectations of softer November inflation, supported by continued rice price deflation, which may give the BSP (Bangko Sentral ng Pilipinas) additional room to consider another rate cut.”

The Philippine Statistics Authority is set to release November inflation data on Dec. 5.

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According to the central bank, the consumer price index likely rose between 1.1 percent and 1.9 percent last month. This, despite the weaker peso and the recent typhoons hitting the Philippines.

With cooler inflation, the BSP can impose another rate cut to help the economy bounce back from its disappointing performance of 4 percent in the third quarter, its slowest growth in four years.

Implementing cheaper interest rates may encourage more consumers and businesses to spend and obtain loans, translating to stronger demand for goods and services.

Alliance Global Group was the index’s top gainer, increasing by 2.13 percent to P7.18. GT Capital Holdings, meanwhile, was the main laggard, falling 3.71 percent to P558.

The market closed with 99 advancers, 97 decliners, with 65 unchanged.