Philippine stocks declined on Tuesday as market sentiment turned cautious ahead of releasing the country’s fourth-quarter gross domestic product (GDP) data and the U.S. Federal Reserve’s upcoming policy decision. Meanwhile, the Philippine peso ended the day virtually unchanged.
The Philippine Stock Exchange index (PSEi) shed 0.70%, closing at 6,153.47, marking a seven-month low. The broader All Shares index also fell, dropping 0.45% to close at 3,623.52.
“The PSEi remained in the 6,100 range as investors adopted a cautious stance ahead of key economic announcements, particularly the release of the Philippine GDP figures and the Federal Reserve’s policy decision,” said Luis Limlingan, head of sales at Regina Capital Development Corp.
Sector performance
Most sectors closed in the red, with Services taking the largest hit, declining by 3.66%. Other sectors also experienced losses, but Financials and Industrials bucked the trend, posting gains of 1.55% and 0.13%, respectively.
Market breadth leaned negative, with decliners outnumbering advancers at 112 to 66, signaling overall bearish sentiment among investors.
On the foreign exchange front, the Philippine peso ended nearly flat at 58.42 to the U.S. dollar, a slight improvement from Monday’s close of 58.43.
The local currency opened the day at 58.48 and traded within a narrow range of 58.40 to 58.56. The weighted average exchange rate for the day stood at 58.475.
Trade volume increased to $1.66 billion, up from Monday’s $1.52 billion, indicating heightened activity in the currency market.
Key economic data awaited
Investors are monitoring the upcoming release of the country’s fourth-quarter GDP figures, which will provide crucial insights into the Philippine economy’s performance amid global headwinds.
Additionally, the U.S. Federal Reserve’s impending policy decision adds to market caution, as it could influence global monetary conditions and impact capital flows in emerging markets like the Philippines.
With these pivotal announcements on the horizon, market participants are expected to remain on edge, closely monitoring developments that could shape trading trends in the days ahead.