The Philippine stock market slumped to its lowest point in 14 months on Thursday, driven by lower-than-expected economic growth data. However, the Philippine peso strengthened against the US dollar despite the market downturn.
The Philippine stock market experienced a downturn on Thursday, hitting its lowest point in 14 months following the release of economic growth data that fell short of expectations. The benchmark Philippine Stock Exchange index (PSEi) reached an intraday low of 6,076.93 in the afternoon but managed to partially recover, ending the day with a loss of 45.81 points, or 0.74 percent, at 6,107.66. This marked the lowest closing level since November 6, 2023, when the PSEi closed at 6,078.03.
The broader All Shares index also declined, shedding 24.20 points or 0.67 percent to close at 3,599.32.Despite the stock market's performance, the Philippine peso strengthened against the US dollar. It gained 14 and a half centavos to close at P58.425. This positive movement was attributed to several factors, including lower crude oil prices and the weakening of the dollar against major global currencies, according to Rizal Commercial Banking Corp. chief economist Michael Ricafort.The peso opened at its day's high of P58.43:$1 and dipped as low as P58.28, with a trading volume of P1.326 billion. Philstocks Financial Inc. research manager Japhet Tantiangco explained that the PSEi's decline for the fourth consecutive day was fueled by investor disappointment over the Philippines' 2024 economic growth forecast of 5.6 percent, falling below the government's target range of 6 to 7 percent. He also noted the Federal Reserve's decision to hold its policy rates steady at its latest meeting as a contributing factor to investor unease. Tantiangco indicated that trading remained relatively subdued with a net value turnover of P4.62 billion and foreign investors exhibiting net selling activity with outflows of P398.32 million. Regina Capital Development Corp. Managing Director Luis Limlingan attributed the Philippine shares' downturn to the Federal Reserve's decision to maintain interest rates unchanged at 4.25 percent to 4.50 percent, signaling a cautious approach towards persistent inflation. He emphasized that the Fed's post-meeting statement provided investors with insights into the rationale behind the rate pause. All sector indices except for mining and oil closed in the negative territory, with mining and oil experiencing the steepest decline of 3.13 percent. Property and services emerged as the only gainers, increasing by 0.67 percent and 0.49 percent, respectively. On a company basis, decliners outnumbered gainers by a margin of 118 to 76, while 36 companies remained unchanged
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