Stocks dive to lowest in nearly 15 months

MANILA, Philippines —  The local stock market suffered another crushing blow, plunging to its lowest level in almost 15 months following the US Federal Reserve’s decision to keep interest rates unchanged and a softer-than-expected Philippine gross domestic product (GDP) data.

As the market returned to action yesterday following a mid-week break, the benchmark Philippine Stock Exchange index fell for the fourth straight session, slipping by 0.74 percent or 45.81 points to close at 6,107.66.

This is the PSEi’s lowest finish since closing at 6,078.03 on Nov. 6, 2023.

Also in the red was the broader All Shares index which declined by 0.67 percent or 24.20 points to settle at 3,599.32.

Yesterday’s decline was attributed primarily to the Federal Reserve’s decision to keep policy rates unchanged during  its latest meeting.

Investors were also sidelined by the country’s 2024 economic growth of 5.6 percent, below the government’s six to seven percent target.

“ The PSEi declined for the fourth straight trading day after the softer-than-expected local GDP data to the slowest in 1.5 years and less dovish Fed signals,” RCBC chief economist Michael Ricafort said

Net value turnover was at P4.62 billion, slightly higher from Tuesday’s P4.11 billion.

Only two sectors emerged in the positive territory—property and services which increased by 0.67 percent and 0.49 percent, respectively.

Mining and oil  as well as holding firms were the biggest losers, dropping by 3.13 percent and 2.12 percent, respectively.

Market breadth remained negative as decliners pummeled advancers, 118 to 76, while 36 issues were unchanged.

Meanwhile, a security incident has hit the system of AB Capital Securities Inc., resulting in the temporary unavailability of trading activities.

AB Capital Securities informed its clients yesterday of a recent security incident that has impacted its systems.