“`html<\/p>\n
PHILIPPINE equities are anticipated to fluctuate within a narrow range this week as investors process the slower-than-forecasted third-quarter economic expansion and await the release of foreign direct investment (FDI) figures.<\/span><\/p>\n On Friday, the benchmark Philippine Stock Exchange index (PSEi) dropped by 1.31% or 76.22 points, finishing at 5,759.37, while the broader All Shares index fell by 0.81% or 28.86 points to 3,514.57. This represented the PSEi\u2019s lowest closing in over three years, or since it finished at 5,783.15 on Oct. 3, 2022.<\/p>\n \u201cThe Philippine market closed lower as selling activity continued following the publication of GDP (gross domestic product) figures, which were significantly below expectations,\u201d remarked Regina Capital Development Corp. Head of Sales Luis A. Limlingan in a Viber message.<\/span><\/p>\n \u201cCorporate profits were insufficient to counterbalance the adverse effects of the disappointing GDP data and the depreciation of the peso to P59 per US dollar.\u201d<\/p>\n Data from the Philippine Statistics Authority (PSA) indicated that GDP grew by 4% year-over-year in the third quarter, a sharp decline from 5.5% in the preceding quarter and 5.2% during the same timeframe a year prior.<\/span><\/p>\n This was the slowest growth rate in more than four years, as the economy faced challenges from weak capital expenditures and typhoon-related destruction in agriculture, with public construction impacted by a corruption scandal involving state infrastructure projects that dampened investor sentiment.<\/span><\/p>\n Online brokerage 2TradeAsia.com stated that the economic slowdown mirrored the cumulative effects of these domestic challenges, although robust 5.5% growth in services, led by finance and trade, along with anticipated holiday spending, might help cushion fourth-quarter performance.<\/span><\/p>\n \u201cSessions sank to their lowest since October 2022 after the GDP underperformed at 4%,\u201d the brokerage noted. \u201cThe PSEi\u2019s subdued decline disguises rotation potential \u2014 we emphasize safe investments for the time being, such as banking and dividend portfolios.\u201d<\/span><\/p>\n For this week, Philstocks Financial, Inc. Assistant Manager for Research and Online Engagement Claire T. Alviar indicated that the local market is likely to move sideways as cautious attitudes continue to impact investors.<\/span><\/p>\n \u201cA positive FDI report could boost confidence, but an unsatisfactory outcome may reinforce the current pessimistic sentiment,\u201d Ms. Alviar stated in a market note.<\/p>\n \u201cDomestically, the potential repercussions of an approaching super typhoon could further dampen sentiment, especially following the recent devastating typhoon in the Visayas.\u201d<\/p>\n Last week, the government proclaimed a state of national calamity after Typhoon Kalmaegi (locally known as Tino) caused extensive damage in the Visayas and Mindanao. On Sunday, Super Typhoon Uwan was projected to affect areas still recovering from the prior storm.<\/span><\/p>\n Ms. Alviar remarked that worries regarding a potential \u201cAI-driven tech bubble\u201d in foreign markets are also influencing risk tolerance.<\/p>\n