PSEi down 1.55%; investors await GDP report

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Share prices opened the week lower, with the main PSEi shedding 1.58 percent on Monday to close at 6,196.88 points as cautious investors waited for the government’s report on the country’s economic performance for full-year 2024.

The PSEi dropped 99.32 points, while the broader All Shares index dipped 41.49 points or 1.13 percent to 3,639.85.

Japhet Tantiangco, analyst at Philstocks Financial Inc., said the market declined as investors remained cautious while waiting for the Philippines’ 2024 gross domestic product (GDP) data, as well as results of the US Federal Reserve’s policy meeting. 

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“Expectations that the local economy was unable to hit the government’s growth target last year weighed on the market,” Tantiango said.

First Metro Investment Corp. head of research Cristina Ulang said the market was hounded by “jitters” over what will likely be a GDP growth disappointment.

Luis Limlingan, managing director of Regina Capital Development Corp., also said Philippine shares fell below the 6,200 level as the market braced for a shortened trading week with more key economic indicators ahead.

All sectors were in negative territory with the industrials, dropping 2.07 percent, incurring most of the losses.

Decliners outnumbered advancers 118 to 68.

Total value turnover reached P5.44 billion

The government is set to announce the country’s GDP results in 2024 on Thursday, January 30. 

Just last week, Finance Secretary Ralph Recto said the country‘s economic growth last year likely fell below the government’s own growth target due to the impact of succeeding typhoons late last year.

Recto then told reporters at the Department of Finance (DOF) office in Manila that the economy’s growth performance in 2024 may have been below the 6 to 6.5 percent assumption made by the Development Budget Coordination Committee (DBCC).

“We probably did not hit our growth targets in 2024 because of the numerous typhoons,” Recto said. 

Asked if the GDP will breach the lower-end of the government’s assumption of 6 percent, the Finance chief replied, “possibly.”

“Because today we’re already at 5.8 percent (as of the third quarter.) We’re below six percent already,” Recto said.

As the government previously reported, the weaker-than-expected 5.2 percent growth in the third quarter of the year dragged the average growth in the first three quarters to 5.8 percent.

The National Economic and Development Authority (NEDA) said last year the slowdown was due to the contraction in agriculture, brought by the combined impact of El Niño, La Niña and several typhoons that hit the country.

The successive typhoons also resulted in suspended classes and work in government offices, as well as supply chain disruptions, NEDA said.

Recto, however, said that growth in the fourth quarter of 2024 could be faster than the third quarter’s 5.2 percent increase.

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