PSEi closes below 6,000 amid economic concerns

The Philippine Stock Exchange index (PSEi) closed below 6,000 on Friday, January 31, 2025, marking its fifth consecutive day of decline and fourth straight week of losses.

The PSEi plunged 4.01 percent to 5,862.59, its lowest since October 3, 2022, influenced by investors reacting to the country's latest economic data.

Economists cited the softer-than-expected GDP growth of 5.6% in 2024, missing the government's target, as a contributing factor to the market's downturn.

The Philippine Statistics Authority reported that the economy slowed in the fourth quarter, growing by 5.2 percent, down from 5.5 percent in the same period in 2023.

Investors remained cautious due to a slowdown in household spending and a contraction in the agriculture sector, which contributed to the lower-than-expected growth rate.

The US Federal Reserve's pause on rate cuts and expectations of fewer rate cuts this year also contributed to the market's performance.

The mining and oil sector was the biggest loser, down by 6.57 percent, while the financial sector was the only sub-index to end in positive territory.