The Philippine Stock Exchange index (PSEi) fell to a new low or to 5,702.64 points on Monday, losing 0.99 percent from the previous low of 5,759.37 points logged on Friday.
Monday’s close was a five-year low and marked the first time the PSEi dropped below the 5,800-point level this year.
Luis Limlingan, Regina Capital Development Corporation head of sales, said “the Philippine market ended lower despite cheaper valuations following the release of the GDP (gross domestic product) figures.”
Growth, as measured by GDP, expanded by a disappointing 4 percent in the third quarter this year, lower than year-ago’s 5.2 percent and quarter-ago’s 5.5 percent. This was traced to drop in business and consumer confidence due to governance issues in the country during the period.
The ongoing probe on corruption involving government flood control projects is also affecting investor sentiment.
“Investors remain cautious about entering the market as concerns over macroeconomic conditions persist. In addition, more firms are releasing their earnings, contributing to the overall mixed sentiment in the market,” Limlingan added.
Only the Mining and Oil index gained during the day after rising by 7.19 percent.
The services index, meanwhile, registered the biggest drop among the sectoral gauges after it fell 1.36 percent.
It was trailed by Financials, 1.34 percent; Property, 0.78 percent; Holding Firms, 0.48 percent; and Industrial, 0.32 percent.
Volume reached 1.86 billion shares amounting to P6.96 billion.
Decliners led advancers at 100 to 85, while 56 shares were unchanged.
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