The main stock index fell below 5,800 points on Monday after closing below 5,900 points in the last five trading days, indicating bearish sentiment still prevails among equity investors.
The Philippine Stock Exchange index (PSEi) closed lower by 1.71 percent at 5,828.06 points, almost mirroring the 5,822.85-point close of April 7, 2025.
Stock analysts said investors likely see weaker gross domestic product (GDP) growth in the third quarter of this year, due to a number of factors such as developments from the United States, and slowdown in government spending due to the flood control corruption.
“The PSEi gapped down as sellers heavily influenced the market early in the session. Traders are likely already pricing in the upcoming GDP and inflation data to be released this week, while overall sentiment remains cautious,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.
“Gains were limited as investors grew concerned that the (US) Fed (Federal Reserve) may take a more cautious approach to cutting rates,” Limlingan added.
Over the weekend, Philstocks Financial Inc. research manager Japhet Tantiangco said the market now has a bearish sentiment, due to weak trading activity and the absence of strong catalysts.
Limlingan added that there were worries over weaker GDP growth in the third quarter.
“Investors are expected to look towards our [third quarter] GDP data to know how the local economy has been. A growth slower than the government’s 5.5 percent to 6.5 percent target for the year may weigh on the market,” Tantiangco added.
However, better inflation for October can help improve investors’ sentiment.
“An inflation print within the BSP’s 1.4 percent to 2.2 percent range forecast, especially one biased to the lower end, may give the market a boost,” Tantiangco said, referring to the Bangko Sentral ng Pilipinas.
Only the Services index ended with gains, with 0.03 percent, but the rest finished on the red, led by the Financials that fell 3.33 percent.
Mining and Oil fell 2.11 percent, trailed by Property, 1.97 percent; Holding Firms, 1.34 percent; and Industrial, 1.24 percent.
Volume was thin at 801.95 million shares, amounting to P9.8 billion.
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