PSEi drops to lowest finish in over 5 years
Caution continued to grip investors on Monday amid disappointing government data, with the index plunging to its weakest finish since August 2020.
The Philippine Stock Exchange index extended its losses by 1 percent, or 56.73 points, to close at 5,702.64.
The broader All Shares Index also dropped by 0.46 percent, or 16.14 points, to 3,498.43.
Only the mining and oil sectors posted gains on the first trading day. Financials and services, on the other hand, booked the largest losses.
The local bourse showed faint signals of recovery in the early morning, but subsequently failed to keep the momentum, according to First Metro Securities.
“The overall tone bucked the upward trajectory seen in most regional peers as investors largely stayed on the sidelines awaiting fresh macro cues,” it added.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., also said “investors remain cautious about entering the market as concerns over macroeconomic conditions persist.”
Last Friday, government data showed that the Philippine economy expanded by just 4 percent in the July to September period, its slowest pace in four years.
On Monday, the central bank reported that foreign direct investments (FDI) in the Philippines had recorded its sharpest drop in six months in August. FDI into the country declined by 40.5 percent to $494 million from $830 million a year ago.
“In addition, more firms are releasing their earnings, contributing to the overall mixed sentiment in the market,” Limlingan added.
Meanwhile, the market closed with 85 gainers, 100 decliners, and 56 remained unchanged.
