Geopolitical tensions dampen investor appetite; PH shares down

Philippine shares followed regional indices lower as investors weighed external risks against the local economy’s recovery.

The benchmark Philippine Stock Exchange Index (PSEi) shed 0.70 percent, or 51.21 points, to 7,309.94 while the broader all-shares index sank 0.84 percent, or 32.74 points, to 3,860.20.

The index was dragged lower by Converge ICT Solutions and SM Prime Holdings, alongside some of the country’s major banks.

“Philippine shares fell as investors assessed the geopolitical tensions between Russia and Ukraine while keeping an eye on the possible impact of tighter monetary policy from the [US Federal Reserve],” Regina Capital Development managing director Luis Gerardo Limlingan said in a note to investors.

The PSEi’s decline on Tuesday pulls it back to its multi-month consolidation range of between 7,000 and 7,350.

Property and industrial stocks slipped 2.21 percent and 1.32 percent, respectively, while financials and services also dropped 0.91 percent and 0.86 percent.

Mining and oil jumped 2.31 percent while holding firms added 0.76 percent.

A total of 1.21 billion shares valued at P8.03 billion changed hands on Tuesday while foreign selling slowed to a net figure of P263.59 million from P2.4 billion the previous day.

Converge ICT Solutions, down 5.90 percent to P25.50 per share, was the session’s most actively traded company.

It was followed by Globe Telecom Inc., down 2.30 percent to P2,720; Solar Philippines Nueva Ecija Corp., down 4.57 percent to P2.09; SM Prime Holdings Inc., down 3.95 percent.