Politics

Stocks inch lower ahead of key economic data

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PHILIPPINE SHARES inched lower on Tuesday as investors await the results of the US midterm elections and the release of key local and foreign economic data this week.

The benchmark Philippine Stock Exchange index (PSEi) declined by 6.48 points or 0.1% to finish at 6,289.10 on Tuesday, while the broader all shares index went down by 5.82 points or 0.17% to 3,307.75.

“Philippine shares closed flat as investors looked ahead to a packed week with congressional midterm elections and key inflation data on deck over the next few days,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

October US consumer inflation data will be released on Nov. 10.

Mr. Limlingan said investors are also awaiting the release of third-quarter Philippine gross domestic product (GDP) data on Thursday.

“After the two consecutive gains of the main index, it dropped as investors booked some gains while waiting for the country’s third-quarter GDP growth to be released this week,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

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 7.4% expansion posted in the second quarter and the 7% seen in the same quarter of 2021.

“Market sentiment is also still supported by mostly stronger/better local economic data, as well as the latest appreciation of the peso exchange rate,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The peso closed at P58.275 versus the dollar on Tuesday, gaining 30.5 centavos from the previous day’s finish, Bankers Association of the Philippines data showed.

The majority of sectoral indices closed lower on Tuesday. Mining and oil declined by 226.76 points or 2.3% to 9,619.43; industrials went down by 88.12 points or 0.96% to 9,024.37; services dropped by 11.55 points or 0.7% to 1,623.71; and holding firms lost 21.31 points or 0.35% to end at 5,997.30.

Meanwhile, property went up by 36.81 points or 1.36% to 2,730.30 and financials added 4.95 points or 0.3% to close at 1,620.24.

Value turnover went up to P4.93 billion on Tuesday with 310.11 million shares changing hands from the P4.48 billion with 337.75 million issues traded on Monday.

Decliners outnumbered advancers, 100 versus 76, while 38 names closed unchanged.

Net foreign buying declined to P375.95 million on Tuesday from P391.21 million on Monday. — A.E. O. Jose