Index snaps four-day rally on growth concerns

The main index snapped its four-day climb on Tuesday as investors took profits and reacted to downgraded 2025 growth forecasts by S&P Global Ratings and the ASEAN+3 Macroeconomic Research Office (AMRO).

The bellwether Philippine Stock Exchange index (PSEi) declined by 0.75% or 45.42 points to close at 5,976.17, while the broader all shares index increased by 1.12% or 39.64 points to 3,574.82.

The PSEi fell below the 6,000 line anew after closing at a one-month high of 6,021.59 on Monday. It opened Tuesday’s trading only slightly lower at 6,016.92 and even reached an intraday high of 6,066.18, but selling pressure caused the index to close at the session’s low.

“Today’s sideways movement ended in the negative territory as investors took profits from the local market’s preceding four-day rally. The trimmed economic growth projections for the Philippines this 2025 by S&P Global Ratings and ASEAN+3 Macroeconomic Research Office added to the negative sentiment,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The local index declined as profit taking from the last sessions took place. Sentiment was also likely weighed down by a lower growth outlook amid ongoing trade pressures. These factors collectively pressured the market throughout today’s session,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

In a report dated Nov. 23, S&P Global cut its Philippine gross domestic product (GDP) growth projection to 4.8% this year from its earlier projection of 5.6%, below the government’s 5.5-6.5% target.

At the same time, AMRO in its latest Annual Consultation Report lowered its GDP growth forecast for the Philippines to 5.2% this year from 5.6% previously.

In the third quarter, the Philippine economy expanded at its slowest pace in over four years at 4%, amid a slump in state spending and consumption due to the corruption scandal. This brought the nine-month average to 5%.

Most sectoral indices declined on Tuesday. Property slumped by 2.54% or 56.88 points to 2,182.12; industrials decreased by 1.7% or 149.70 points to 8,615.71; services went down by 0.42% or 10.11 points to 2,389.78; and holding firms fell by 0.16% or 7.98 points to 4,740.44.

Meanwhile, mining and oil surged by 5.7% or 719.81 points to 13,340.95, and financials went up by 0.46% or 9.31 points to 1,998.76.

“Bank of the Philippine Islands was the day’s top index gainer, climbing 3.54% to PHP 117. Manila Electric Co. was the worst index performer for the day, dropping 4.85% to PHP 588,” Mr. Tantiangco said.

Decliners outnumbered advancers, 93 to 89, while 66 names were unchanged.

Value turnover went down to PHP 9.51 billion on Tuesday with 1.17 billion shares traded from the PHP 13.69 billion with 846.2 million issues exchanged on Monday.

Net foreign selling ballooned to PHP 2.98 billion on Tuesday from PHP 815.91 million on Monday. — Alexandria Grace C. Magno