PHILIPPINE STOCKS fell further on Monday as investors awaited the outcome of the US presidential election and the release of key Philippine economic data this week.
The benchmark Philippine Stock Exchange index (PSEi) fell 0.09% or 6.86 points to close at 7,136.10, while the broader index of all shares fell 0.14% or 5.55 points to end at 3,951.66.
This was the lowest closing for the PSEi in seven weeks or since the end of September 16 at 7,104.20.
“The local market is closed on Monday. “Investors remain cautious as they await key economic data to be released this week, as well as the upcoming US presidential election,” said Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco in a statement sent by Viber.
“Investors are taking into account inflation expectations in October and a slowdown in gross domestic product (GDP) growth in the third quarter. Immigrants were still selling at a surplus, causing challenges in the markets,” he added.
The Philippine Statistics Authority will release October inflation data on Tuesday (Nov. 5) and third quarter GDP data on Thursday (Nov. 7).
A BusinessWorld a poll of 11 analysts gave an average estimate of 2.4% for the consumer price index for October. This will be faster than the 1.9% posted in September but slower than the 4.9% in the same month last year.
Meanwhile, it’s different BusinessWorld a survey of 12 analysts projected average GDP growth of 5.7% in the July to September period, which would be slower than 6.3% growth in the previous quarter and 6% growth in the third quarter of 2023.
“Philippine stocks sold off as the market focused on key events in the US, with investors paying close attention to the November 5 election and the Federal Reserve’s policy meeting. Any indications from the Fed regarding future rate adjustments can shape the market,” said Regina Capital Development Corp.’s Head of Sales. Luis A. Limlingan in a Viber message.
The Fed will hold its policy meeting on November 6-7. Markets widely expect the US central bank to cut rates by 25 basis points.
Most industrial indices fell on Monday. Mining and oil fell by 1.93% or 167.12 points to 8,487.19; the commodity fell by 1.34% or 37.60 points to 2,755.97; funds fell by 0.89% or 20.78 points to 2,311.09; while industrials fell by 0.23% or 22.63 points to 9,827.98.
Meanwhile, participating firms rose 0.99% or 60.16 points to 6,097.06, while services rose 0.88% or 19.17 points to 2,190.76.
The stock fell to P4.65 billion on Monday with 588.45 million shares changing hands from P5.43 billion with 803.18 million shares traded on Thursday.
They have decreased in number from developers, 107 compared to 76, and 58 names have not been changed.
Total exports fell to P777.98 million on Monday from P1.31 billion on Thursday. – RMD Ochave
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