PSEi down further as remittances post weak growth
The Philippine Stock Exchange Index (PSEi) extended losses on Thursday after July data showed just a modest increase in remittances from Filipinos working overseas.
By the closing bell, the benchmark measure shed 0.11 percent, or 7.19 points, to 6,575.67 while the broader All Shares index slipped 0.009 percent, or 0.31 points, to 3,496.9.
The Bangko Sentral ng Pilipinas said overseas Filipino worker (OFW) remittances in July rose 2.3 percent to $3.24 billion compared to the previous year.
Experts warned the strong US dollar against the peso would not be enough to overcome price surges experienced by OFW beneficiaries in the Philippines.
“Whatever gains OFWs and their families/dependents may have due to more peso proceeds for their US dollars/foreign currencies may be offset/negated by higher prices/inflation, currently near four-year high at 6.3 percent [but inflation could be higher for other products such as fuel/petroleum]; somewhat prompting the need to send more OFW remittances to the country,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
PSE subsectors were mostly lower, with financials, industrial, holding firms and services pulling back while property and mining and oil rose.
A total of 662.91 million shares valued at P5.5 billion changed hands while foreigners were net buyers amounting to P23.5 million.
SM Prime Holdings Inc. was the top traded stock as it added 1.25 percent to P36.50 per share.
It was followed by Ayala Corp., up 2.47 percent to P748; Ayala Land Inc., up 0.7 percent to P28.60; BDO Unibank Inc., down 2.08 percent to P122.5; and San Miguel Corp., up 3.16 percent to P98 per share.
SM Investments Corp. was down 1.11 percent to P850; Jollibee Foods Corp., up 1.06 percent to P247.40; Globe Telecom Inc., up 0.37 percent to P2,178; Solar Philippines Nueva Ecjia Corp., down 0.66 percent to P1.50; and Emperador Inc., up 1.23 percent to P20.55 per share.
Overall, there were 90 advancers against 74 decliners while 51 companies closed unchanged, PSE data showed.