PSEi hits five-year low as twin typhoon fears cloud growth outlook
The Philippine Stock Exchange Index (PSEi) continued its decline following last week’s slower economic growth data, coupled with concerns over the impact of the recent twin super typhoons.
The main index shed 56.73 points, or 0.99 percent, to close at 5,702.64 on Monday. Nov. 10. The Services and Banks sectors led the decline, while Miners bucked the trend.
Volume was 1.86 billion shares valued at ₱6.96 billion. Losers outnumbered gainers 100 to 85, with 56 issues unchanged.
“The Philippine market ended lower despite cheaper valuations following the release of the GDP [gross domestic product] figures. Investors remain cautious about entering the market as concerns over macroeconomic conditions persist,” said Luis Limlingan, Managing Director at Regina Capital Development Corp.
He added that “more firms are releasing their earnings, contributing to the overall mixed sentiment in the market.”
Michael Ricafort, Chief Economist at Rizal Commercial Banking Corp. (RCBC), noted the PSEi declined for the second straight trading day and the third day in four trading days, closing at its intraday low of 5,702.64. This marks the lowest close in more than five years, since it settled at 5,570.22 on May 28, 2020.
Ricafort attributed the decline to the series of storms, which could further slow down local economic growth.
The selling pressure also follows softer net foreign direct investments (FDIs) data and the latest increases in local fuel prices and electricity rates.