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PSEi sinks to 2-year low on disappointing growth

Richmond Mercurio - The Philippine Star
PSEi sinks to 2-year low on disappointing growth
The benchmark Philippine Stock Exchange index (PSEi) declined for the fifth consecutive session yesterday, plunging by 4.01 percent or 245.07 points to 5,862.59.
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MANILA, Philippines — The local stock market sank to its lowest level in a little over two years, weighed down by the index rebalancing and prevailing negative sentiment from the country’s economic growth in 2024.

The benchmark Philippine Stock Exchange index (PSEi) declined for the fifth consecutive session yesterday, plunging by 4.01 percent or 245.07 points to 5,862.59.

This marks the PSEi’s lowest finish in 27 months, or since closing at 5,853.63 on Oct. 12, 2022.

 The broader All Shares index likewise saw a massive drop of 2.19 percent or 79 points, settling at 3,520.32.

“The market crashed into bear territory in the face of disappointing GDP results, a major index rebalancing and President Donald Trump’s looming threat of massive tariffs on Canada, Mexico and China,” China Bank Capital Corp. managing director Juan Paolo Colet said. 

Colet said yesterday’s finish puts the market dangerously close to its critical support at 5,700.

“But barring any negative surprises this weekend, we may see a relief rally by next week,” he said.

AP Securities research head Alfred Benjamin Garcia said that much of the decline could be attributed to the index rebalancing, as all index names had to be down weighted to make room for the inclusion of AREIT and China Banking Corp. 

“These two have much larger free float-weighted market caps than the stocks that are to be removed – Nickel Asia and Wilcon Depot – hence the big adjustment to the weights of the other index stocks,” Garcia said.

China Banking Corp. was yesterday’s top traded company, surging by 38.91 percent to P93 per share, followed by AREIT which jumped by 7.69 percent to P42.

Overall, trading was robust with net value turnover reaching P20.61 billion.

All counters were in the red, except for financials which rose by 1.05 percent.

PHILIPPINE STOCK EXCHANGE

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