Weaker peso, foreign selling push down PSEI toward 6,100
MANILA, Philippines — A weaker peso and strong foreign selling pushed the local bourse over its steepest drop of the year so far on Friday, with the benchmark index touching the 6,100 level for the first time in seven months.
The Philippine Stock Exchange Index (PSEi) entered an eight-session losing streak on the last trading day of the week, falling by 2.93 percent, or 186.08 points, to close at 6,158.48.
Likewise, the broader All Shares Index slipped by 1.89 percent, or 65.11 points, to 3,375.20.
There was also heavy volume, with 632.74 million shares worth P8.26 billion changing hands, stock exchange data showed
Philstocks Financial Inc. research analyst Claire Alviar noted that the market’s negative performance was due to strong net foreign selling, recording a net outflow of P1.34 billion.
She added that the weak peso likewise dampened investor sentiments. The peso reached its weakest position in 20 months at 58.80 against the US dollar on Friday.
BSP rate cut hints
The local bourse has been falling in recent weeks, mostly due to the Bangko Sentral ng Pilipinas hinting at fewer interest rate cuts this year, which would mirror the move of the US Federal Reserve.
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All subsectors were painted red, as index heavyweights registered declines.
Razon-led International Container Terminal Services Inc. was the top-traded stock as it fell by 5.56 percent to P316 each.
It was followed by Bank of the Philippine Islands, down 5.18 percent to P109.80; BDO Unibank Inc., down 2.45 percent to P127.30; SM Prime Holdings Inc., down 3.56 percent to P25.70; and Metropolitan Bank and Trust Co., down 1.1 percent to P67.25 each.
Other actively traded stocks were PLDT Inc., down 4.59 percent to P1,350; Ayala Land Inc., down 4 percent to P26.40; JG Summit Holdings, down 5.56 percent to P25.50; SM Investments Corp., down 1.42 percent to P836; and Jollibee Foods Corp., down 2.85 percent to P211.
Losers overpowered gainers, 108 to 74, while 52 companies closed unchanged.
