PSEi slips 0.7% ahead of economic, monetary reports 

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Share prices eased further on Tuesday, with the main PSEi down 0.7 percent at 6,153.47 points by the close of trade as investors remained cautious while waiting for the release of key economic indicators.

The PSEi dropped 43.41 points, while the broader All Shares index dipped 16.33 points or 0.45 percent to 3,623.52.

“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,” Japhet Tantiangco, analyst at Philstocks Financial Inc., said.

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Four sectors were in negative territory, while two industries posted gains.

“The banks led the sectors climbing 1.55 percent). The services sector was the worst performing sector, shedding 3.66 percent. Losers edged gainers 112 to 66,” Tantiangco said.

Total value turnover reached P5.64 billion.

Luis Limlingan, managing director of Regina Capital Development Corp., said Philippine shares were sold ahead of the Chinese New Year holiday, amid concerns of a potential artificial intelligence (AI) stock bubble bursting. 

“This was sparked by reports of Chinese startup DeepSeek developing a competitive AI model at a fraction of the cost Silicon Valley firms are spending,” he said.

“Adding to the uncertainty, the Federal Reserve is set to hold its first policy meeting of the year on Wednesday to decide on interest rates,” Limlingan added.

Investors were cautious ahead of the release of Philippine GDP data and the Federal Reserve’s policy decision, Limlingan also said.  

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

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

This falls below the Development Budget Coordination Committee’s growth assumption of six to 6.5 percent for 2024.  

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