PSEi drops 1.22% due to trade deficit, FDI decline, and World Bank downgrade

The Philippine Stock Exchange index (PSEi) closed weaker on Wednesday, dropping 1.22 percent due to several negative economic indicators.

Philstock Financials research manager Japhet Tantiangco cited factors such as the widening trade deficit and decline in foreign direct investment inflows, along with a World Bank downgrade of the Philippine economic growth forecast for 2024 from 6 percent to 5.9 percent.

The peso also weakened against the US dollar, closing at 58.28 from 58.01 on Tuesday, reflecting broader concerns about the country's economic performance.

Trade volume increased to PHP5.23 billion from PHP3.47 billion on Tuesday, indicating heightened market activity amid economic uncertainties.

Losers outnumbered gainers by 112 to 80, while 55 companies closed unchanged, with foreign outflows totaling P497.83 million.