THE Philippine Stock Exchange index (PSEi) closed at its lowest level since November 2023 on Tuesday as investors preferred to stay on the sidelines before the US Federal Reserve’s policy decision and the release of Philippine gross domestic product (GDP) data.
The PSEi slumped by 0.70% or 43.41 points to end at 6,153.47 on Tuesday, while the broader all shares index declined by 0.44% or 16.33 points to end at 3,623.52.
Tuesday’s close was the PSEi’s worst in over 14 months or since it finished at 6,110.88 on Nov. 14, 2023. The main index is nearing bear territory as it is now down by 19% from its latest intraday high of 7,604.61 recorded on Oct. 7, 2024.
Philippine financial markets are closed on Jan. 29 (Wednesday) for Lunar New Year.
“The local market gave up more ground as investors maintained a cautious stance while waiting for catalysts. Investors are still looking forward to the Philippines’ 2024 GDP data as well as the Federal Reserve’s policy meeting,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
The Fed was set to begin its two-day review overnight, while the Philippine Statistics Authority will release fourth quarter and full-year 2024 GDP data on Jan. 30.
“We’re still seeing a sell-off in big caps ahead of the index recomposition on Friday, where we expect a down weight across the board for existing index issues to make room for the entry of AREIT, Inc. and China Banking Corp. (Chinabank),” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message. “A lot of investors are also on the sidelines ahead of the Federal Reserve meeting and GDP reports from the Philippines and the US on Thursday.”
Effective Feb. 3, the 30-member PSEi will include AREIT and Chinabank to replace Nickel Asia Corp. and Wilcon Depot, Inc., which will now be part of the PSE MidCap index.
Majority of sectoral indices closed lower on Tuesday. Services retreated by 3.66% or 74.30 points to 1,955.38; mining and oil declined by 0.94% or 72.51 points to 7,614.48; holding firms went down by 0.56% or 29.62 points to 5,205.4; and property dropped by 0.15% or 3.5 points to 2,274.26.
Meanwhile, financials rose by 1.55% or 33.26 points to 2,173.45 and industrials climbed by 0.12% or 11.06 points to 8,690.60.
“Monde Nissin Corp. was the top index gainer, climbing 2.64% to P6.99. Outgoing index member Wilcon Depot, Inc. was at the bottom, plunging 8.10% to P8.40,” Mr. Tantiangco said.
Value turnover rose to P5.64 billion on Tuesday with 1.53 billion issues changing hands from the P5.44 billion with 1.14 billion shares traded on Monday.
Decliners outnumbered advancers, 112 versus 66, while 61 names were unchanged.
Net foreign buying stood at P199.32 million on Tuesday, a turnaround from the P322.39 million in net selling recorded on Monday. — Revin Mikhael D. Ochave
