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PHL shares drop as focus shifts to GDP, US CPI

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STOCKS declined on Wednesday as investors stayed on the sidelines ahead of the release of third-quarter Philippine gross domestic product (GDP) data and October US inflation data.

The bellwether Philippine Stock Exchange index (PSEi) declined by 47.42 points or 0.75% to finish at 6,241.68 on Wednesday, while the broader all shares index went down by 15.01 points or 0.45% to 3,292.74.        

AB Capital Securities, Inc. Vice-President Jovis L. Vistan said the PSEi went down as investors preferred to stay on the sidelines before the release of Philippine GDP and US consumer price index (CPI) data on Thursday.

“Local stocks tumbled as investors opted to stay on the sidelines. Buyers were on strike ahead of a data-heavy day tomorrow,” Mr. Vistan said in a Viber message on Wednesday.

“Locally, we will be getting the third-quarter GDP results, which are expected to be lower.  Abroad, investors will be waiting for the important US CPI numbers. All these numbers will have a bearing on the market’s direction,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the market ended lower as some investors booked gains ahead of the data releases.

“The PSEi again corrected lower for the second straight day, considered a healthy profit-taking ahead of the latest US CPI,” Mr. Ricafort said in a Viber message.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar said that investors were digesting latest Philippine labor data released on Tuesday ahead of the GDP report.

The economy likely expanded at a slower pace last quarter as high inflation, rising interest rates, and the peso’s depreciation dampened consumer spending.

A BusinessWorld poll of 16 analysts last week yielded a median estimate of 6.1% for third-quarter GDP growth. If realized, this would be slower than the 7.5% expansion posted in the second quarter and the 7% seen in the same quarter of 2021.

The majority of sectoral indices ended lower on Wednesday. Mining and oil went down by 261.67 points or 2.72% to 9,357.76; property dropped by 56.50 points or 2.06% to 2,673.80; services declined by 32.48 points or 2% to 1,591.23; and financials lost 6.15 points or 0.38% to close at 1,614.09. 

Meanwhile, industrials gained 35.26 points or 0.39% to end at 9,059.63; and holding firms went up by 6.82 points or 0.11% to 6,004.12.

Decliners outnumbered advancers, 95 versus 84, while 39 names closed unchanged.   

Value turnover went up to P5.57 billion on Wednesday with 427.71 million shares changing hands from P4.93 billion with 310.11 million issues traded on Tuesday.

Net foreign buying went up to P509.32 million on Wednesday from P375.95 million on Tuesday.

AB Capital Securities’ Mr. Vistan put the PSEi’s support at 6,150 and resistance at 6,300. — AEOJ

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