In August 10, 2023, the government reported that second-quarter GDP growth was a disappointing 4.3 percent that was attributed to slower spending by government. This caused the PSEi to close below 6,200 points three times in August.

“The market fell after a surprisingly disappointing Philippine second quarter GDP print of 4.3 percent, which was below consensus forecast of 6 percent,” China Bank Capital Corp. managing director Juan Paolo Colet said on August 10, 2023.

On the other hand, the inflation rate for July that was reported in August was lower at 4.7 percent.

The PSEi average in August was 6,365.50 points, or 2.92-percent lower compared to the 6,551.70-point average in September.

September was also another bad month for stock market investors, as the inflation rate in August went up to 5.3 percent.

Also, the ADB lowered its 2023 GDP growth forecast for the Philippines to 5.7 percent from the previous 6 percent because of the lower 4.3-percent economic growth in the second quarter.

On September 20, the PSEi hit another low point for 2023 at 6,041.04 points, which Ricafort said was also the lowest point since October 25, 2022.

“(This is) after the Asian Development Bank reduced its estimate for Philippine GDP growth for 2023 to 5.7 percent from the previous estimate of 6 percent,” he said.

With those, the PSEi average for September was 6,199.31 points or 2.68-percent lower than the stock index average of August.

In October, two events caused the PSEi to close at its lowest in 2023: the announcement of a higher 6.1-percent inflation rate in September; and the BSP announcing a rate hike in October 26, 2023. So, on October 27, 2023, the PSEi went closed below 6,000 points for the first time last year or to 5,961.99 points.

There were also fears of inflation remaining elevated for the rest of 2023.

Also, BSP Governor Eli Remolona also said in October 11, 2023 that the BSP was considering another policy rate hike.

“We’re looking at the numbers, looking at them twice, three times. The upside risks that we feared, some of them materialized already. One thing we were worried about was transport fare hikes and that has happened. I wouldn’t say that we’re done with the tightening,” Remolona said in a press conference in October 11, 2023.

And on October 26, 2023 the BSP announced that its Monetary Board decided to increase policy rates for the third time in 2023.

The PSEi average for October of 6.191.89 points, however, was only 0.11-percent lower compared to the September PSEi average.