PSEi closes at 3-year low amid investor caution ahead of GDP data

The Philippine Stock Exchange index (PSEi) closed at 5,818.06 on Wednesday, its lowest finish in over three years, dropping 0.83 percent or 48.98 points amid investor caution.

This decline occurred as investors awaited the release of third-quarter GDP data, which is expected to fall below the government's target.

Inflation was unchanged at 1.7 percent in October, aligning with expectations.

Analysts note that traders are pricing in the upcoming economic data, with consensus expecting third-quarter GDP to grow by 5.2 percent.

The projected GDP growth of 5.2 percent falls below the government's target of 5.5 to 6.5 percent for the year, partly due to tighter state spending and disruptions from typhoons.

Negative spillovers from Wall Street amid overvaluation concerns with the US' artificial intelligence sector also affected the local bourse.

All sectors ended in the red, with mining and oil posting the highest losses at 3.62 percent.

Trading lacked momentum, with the net value turnover pegged at P4.54 billion, below the year-to-date average of P5.86 billion.