PSEi plunges below 6,000 level | ABS-CBN

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PSEi plunges below 6,000 level

PSEi plunges below 6,000 level

Arthur Fuentes,

ABS-CBN News

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MANILA — The Philippine Stock Exchange took a beating on Friday with the main index shedding 4 percent and sinking below the 6,000 support level.

The PSE index ended the last trading day of January down 245 points at 5,862.59 while the broader All Shares index fell 2.19 percent and closed at 3,520.32.

This followed the release of GDP growth figures which showed that the Philippine economy expanded at a slower-than-expected pace in the fourth quarter of 2024, and that the country missed its growth target.

This also followed the US Federal Reserve's pause on rate cuts as well as expectations that the Fed would implement fewer rate cuts this year.

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Friday's close was the lowest since Oct. 3, 2022, when it closed at 5,783. 



Christina Gabaldon, deputy Head of Metro Bank Trust Investment Management Division, said they see the PSEi support level at 5800 and resistance at the 6000. Gabaldon noted that year-to-date, PSE is down 10.2 percent.

"Typically in January, markets tend to be up, but this time it's not," she said. 

Part of the reason was the index revaluation, she said.

"So index reconstitution that happened today is the addition of AREIT and CBC and deletion of NICKEL and WILCON. And for deleted names, you can see that they are the worst-performing stocks in the index year to date. And for addition, CBC, wow, it's up to 38.9 percent today."

The PSEi's performance in February will rest on the corporate earnings reports expected starting next month.  

"I guess expectation would be banks would still be good utilities, I think those would still show good earnings. So it depends on that."

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