PSEi drops to seven-week low before key data

PHILIPPINE STOCKS dropped further on Monday as investors await the outcome of the US presidential election and the release of key Philippine economic data this week. 

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.09% or 6.86 points to close at 7,136.10, while the broader all shares index went down by 0.14% or 5.55 points to end at 3,951.66.

This was the PSEi’s lowest close in seven weeks or since Sept. 16’s finish of 7,104.20.

“The local market closed lower this Monday. Investors maintained a cautious stance while waiting for crucial economic data to be released this week, as well as the US’ upcoming presidential elections,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Investors are taking into consideration expectations of higher inflation in October and a slowdown in gross domestic product (GDP) growth in the third quarter. Foreigners were still net sellers, adding to the market’s challenges,” he added.

The Philippine Statistics Authority will release October inflation data on Tuesday (Nov. 5) and third-quarter GDP data on Thursday (Nov. 7).

A BusinessWorld poll of 11 analysts yielded a median estimate of 2.4% for the October consumer price index. This would be faster than the 1.9% print in September but slower than 4.9% in the same month last year.

Meanwhile, a separate BusinessWorld poll of 12 analysts yielded a median GDP growth estimate of 5.7% for the July-to-September period, which would be slower than the 6.3% growth in the previous quarter and the 6% expansion in the third quarter of 2023.

“Philippine shares traded as the market focus intensifies on key US events, with investors keeping a close watch on the Nov. 5 elections and the Federal Reserve’s policy meeting. Any indications from the Fed regarding future rate adjustments could shape market sentiment,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Fed will hold its policy meeting on Nov. 6-7. Markets widely expect the US central bank to cut rates by 25 basis points.

Majority of sectoral indices declined on Monday. Mining and oil retreated by 1.93% or 167.12 points to 8,487.19; property dropped by 1.34% or 37.60 points to 2,755.97; financials went down by 0.89% or 20.78 points to 2,311.09; and industrials decreased by 0.23% or 22.63 points to 9,827.98.

Meanwhile, holding firms rose by 0.99% or 60.16 points to 6,097.06, and services climbed by 0.88% or 19.17 points to 2,190.76.

Value turnover dropped to P4.65 billion on Monday with 588.45 million shares changing hands from the P5.43 billion with 803.18 million issues traded on Thursday.

Decliners outnumbered advancers, 107 versus 76, while 58 names were unchanged.

Net foreign selling went down to P777.98 million on Monday from P1.31 billion on Thursday. — R.M.D. Ochave