PSEi falls below 6,100 on geopolitical woes

MANILA, Philippines – Local stocks retreated on Tuesday as lingering geopolitical tensions overseas and concerns over the domestic economic outlook dampened investor sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) dropped 1.57 percent, or 96.24 points, to close at 6,037.17, slipping back below the 6,100 level.

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According to Philstocks Financial Inc., investors remained cautious as the market continued to grapple with external risks and the absence of fresh positive catalysts.

“The local market declined as geopolitical concerns offshore and weakening local economic outlook continued to weigh on investor confidence,” the brokerage said.

The lack of a strong market driver led investors to trim positions, causing broad-based losses across sectors.

Luis Limlingan, head of sales at Regina Capital Development Corp., further noted that the local bourse ended lower after profit-taking, following gains over three straight sessions, as investors closed positions to end the first half of the year.

Trading activity remained relatively active, with net value turnover reaching P6.45 billion. On the other hand, foreign investors stayed on the sidelines and ended the day as net sellers with outflows amounting to P342.22 million.

Lost ground

All sectoral indices closed in negative territory, led by banks, which slumped 2.67 percent.

Among index members, food manufacturer Century Pacific Food Inc. emerged as the session’s top performer after climbing 1.64 percent to P31 per share.

Notably, DigiPlus Interactive Corp. was the biggest decliner in the benchmark index, shedding 4.88 percent to end at P11.70 apiece.

Analysts said the decline erased some recent gains as investors tracked global developments and their impact on the Philippine economy and corporate earnings. /pai INQ