PSEi drops to 5,600 level on weak Q3 growth
The local bourse welcomed the trading week in the red as the Philippine economy weakened further in the third quarter.
The Philippine Stock Exchange Index (PSEi) dropped by 1.46 percent, or 84.03 points, to finish at 5,677.92.
The broader All Shares also declined by 1.08 percent, or 34.79 points, to 3,183.52.
Only the mining and oil sector ended in the green, with gains reaching 2.35 percent. Property and conglomerates took the hardest blow, falling 2.07 percent and 1.94 percent, respectively.
“The PSEi closed lower as investors reacted to the weaker-than-expected GDP (gross domestic product) print, raising concerns over the country’s economic growth prospects,” said Luis Limlingan, head of sales at Regina Capital Development Corp.
Data from the Philippine Statistics Authority showed that economic growth slowed to 2.1 percent in the July to September period, from the 2.4 percent logged in the previous quarter.
The figure marked the fifth consecutive quarter of economic slowdown, as government spending and domestic demand remained weak due to the corruption scandal and the monthslong Middle East war.
For the first nine months, the economic growth averaged 2.5 percent, still below the Marcos administration’s 3.5-percent to 4.5-percent target.
Limlingan said that “sentiment remained fragile” as the country still faces threats of super El Niño and elevated inflation, factors that could further affect demand and economic activity.
“The combination of growth concerns and macroeconomic headwinds prompted investors to maintain a cautious stance and limit exposure to local equities,” he added.
The market closed with 74 advancers, 100 decliners, with 69 unchanged.
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