PSEi drops to 5-year low as weak GDP data spooks investors

The Philippine Stock Exchange index (PSEi) plunged to an over five-year low, closing at 5,702.64 points, a 0.98% decrease.

This downturn followed the release of disappointing third-quarter Gross Domestic Product (GDP) growth data, which slowed to 4 percent, the weakest pace in over four years.

Foreign direct investments (FDI) also dropped significantly, plunging by 40.5% in August and 22.5% year-to-date, fueling fears of an economic slowdown.

The peso also depreciated, sliding back to the 59 to $1 level, closing at 59.04 versus the US dollar.

Market analysts attributed the selling pressure to the weak GDP figures, disappointing FDI, and concerns over the peso's performance.

One analyst cited a slowdown in government spending due to a corruption scandal as a contributing factor to the weaker-than-expected GDP.