The local stock market sank to its lowest level in seven months as investors wait for results of major economic data releases this week.
The benchmark Philippine Stock Exchange index (PSEi) plunged by 1.71 percent or 101.62 points, ending yesterday’s session at 5,828.06. This was its worst closing since it finished at 5,822.85 on April 7.
The broader All Shares index also took a heavy beating, dropping by 1.24 percent or 44.38 points to 3,548.90.
Luis Limlingan of Regina Capital said the PSEi gapped down as sellers heavily influenced the market early in the session.
‘Traders are likely already pricing in the upcoming GDP and inflation data to be released this week, while overall sentiment remains cautious,’ Limlingan said.
Unicapital Securities Inc. equity research analyst Peter Garnace said investors traded cautiously ahead of major economic releases in the coming days.
This week, Garnace said that investors would be on the lookout for the inflation, unemployment rate and the gross domestic product (GDP) figure for the third quarter.
‘Consensus is expecting October inflation to rise by 1.8 percent year-on-year, within the Bangko Sentral ng Pilipinas’ (BSP) forecast of 1.4 to 2.2 percent. Meanwhile, Philippine third quarter GDP is expected to grow by 5.2 percent, falling below the government’s 5.5 to 6.5 percent target for the year,’ Garnace said.
‘Investors will closely parse this week’s inflation and GDP figures, which will provide hints on the BSP’s policy path in their December meeting,’ he said.
All sectors were in red territory, except for services, which eked out a 0.03-percent improvement. Financials posted the biggest drop at 3.33 percent, followed by mining and oil with a 2.11-percent plunge.