PSEi slips on profit taking, weak growth outlook
THE MAIN INDEX inched lower on Tuesday due to profit taking and as expectations that Philippine economic growth would miss the government’s target this year affected market sentiment.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.12% or 8.68 points to end at 6,734.21 on Monday, while the broader all shares index rose by 0.05% or 2.17 points to 3,791.77.
“The local market declined this Tuesday as investors quickly booked profits from [Monday’s] climb, reflecting their cautious stance amid lingering uncertainties,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Investors also digested the ASEAN+3 Macroeconomic Research Office’s (AMRO) downward revision of its Philippine economic growth forecast for 2024,” he added.
AMRO in its annual consultation report slashed its Philippine gross domestic product growth projection to 5.8% this year from its 6.1% estimate in October due to slower consumption.
This would fall below the government’s revised 6-6.5% growth target this year.
“Philippine and US equities delivered mixed results as investors await more data that would confirm that the world economy continues to show signs of recovery,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“US manufacturing improved in November, with the purchasing managers index exceeding expectations, though it remained in contraction ahead of Friday’s jobs report. Investors now await Friday’s November jobs report,” he added.
On Tuesday, Wall Street stocks were mixed, Reuters reported. The Dow Jones Industrial Average fell 0.29% to 44,782; the S&P 500 rose 0.24% to 6,047.15; and the Nasdaq Composite rose about 1% to 19,403.95.
Data showed US manufacturing contracted at a moderate pace in November, with orders growing for the first time in eight months and factories facing significantly lower prices for inputs. More economic data is expected this week, including the key monthly jobs report on Friday.
Back home, majority of sectoral indices ended lower on Tuesday. Holding firms went down by 0.56% or 32.76 points to 5,754.30; financials retreated by 0.15% or 3.52 points to 2,254.74; industrials dropped by 0.03% or 2.97 points to 9,220.99; and property declined by 0.03% or 0.99 point to 2,516.59.
Meanwhile, services went up by 0.53% or 11.17 points to 2,105.86; and mining and oil climbed by 0.03% or 2.27 points to 7,488.87.
Value turnover rose to P5.77 billion on Tuesday with 492.73 million issues traded from the P4.65 billion with 386.31 million shares exchanged on Monday.
Advancers outnumbered decliners, 103 versus 90, while 48 names were unchanged.
Net foreign selling increased to P389.94 million on Tuesday from P77.68 million on Monday. — Revin Mikhael D. Ochave with Reuters
