PSEi sinks again toward 5,800

The local bourse sank further on Wednesday as investors worried about sluggish local economic data, paired with weak leads from Wall Street.

The Philippine Stock Exchange index (PSEi) dropped by 0.83 percent or 48.98 points to close at 5,818.06. This was its worst finish since last April 7, when the market closed at 5,822.85.

The broader All Shares Index also fell by 0.69 percent or 24.5 points, to 3,534.38.

All sectors ended in the red, with mining and oil posting the highest losses at 3.62 percent.

Trading lacked momentum with the net value turnover pegged at P4.54 billion, below the year-to-date average of P5.86 billion.

“The local market dropped as investors traded cautiously while looking forward to the third-quarter gross domestic data data release, which is expected to be below target,” Philstocks financial research manager Japhet Tantiangco said.

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The government will release GDP data on Friday, with some top officials expecting a slowdown in the economy as the recent controversy over infrastructure projects resulted in tighter state spending. The series of typhoons that hit several regions of the country had also disrupted business activities during the period.

Tantiangco also said the decline in Philippine shares mirrored the bearish sentiment from Wall Street.

“The Philippine market tracked the broader decline in global equities after the CEOs of Goldman Sachs and Morgan Stanley on Tuesday cautioned investors to brace for a drawdown in markets over the next two years,” said Alfred Benjamin Garcia, research head at AP Securities Inc.