PSEi tanks close to 6,000 as US yields portend economic dangers

MANILA  -The Philippine Stock Exchange index (PSEi) descended closer to the 6,000 support zone amid lingering concerns over the health of the global economy.

By the closing bell, the PSEi was down 0.89 percent, or 54.46 points, to 6,088.44 while the broader All Shares index shed 0.79 percent, or 26.36 points, to 3,303.06.

“Philippine shares started the week in the red as investors’ sentiment was tainted by the surge in the US 10-year treasury yield, which raised widespread concerns regarding the economic outlook,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Monday.

Analysts said the benchmark yield, which just crossed 5 percent in 16 years, increases the risk of a recession in the US.

Trading activity slumped on Monday as 551.51 million shares valued at P3.3 billion changed hands while net foreign selling hit P777.62 million, data from the stock exchange showed.

All PSE subsectors finished lower, led by financials (-1.73 percent), mining and oil (-1.44 percent) and industrial (-0.94 percent).

BDO Unibank Inc. was the top traded stock as it rose 2.32 percent to P126.40 per share.

It was followed by Ayala Land Inc., down 1.75 percent to P28.15; Bank of the Philippine Islands, down 2.94 percent to P102.20; Jollibee Foods Corp., down 2.42 percent to P210; and SM Investments Corp., down 0.73 percent to P811 per share.

Benguet Corp. rose 7.74 percent to P5.01; Universal Robina Corp., up 0.27 percent to P113.50; International Container Terminal Services Inc., down 1.06 percent to P205; Ayala Corp., down 0.98 percent to P609; and Converge ICT Solutions Inc., down 4 percent to P8.88 per share. Overall, there were 123 losers against 50 advancers while 55 companies closed unchanged, data from the stock exchange also showed.