PSEi drops below 6,000 on slower growth, geopolitical woes

MANILA, Philippines — Local stocks fell below the 6,000 level on Wednesday as investor fears of sluggish local economic growth and geopolitical conflicts deepened.

The Philippine Stock Exchange Index (PSEi) plunged by 1.51 percent, or 90.84 points, to close at 5,916.94.

READ: GDP growth seen to underperform target

The broader All Shares also fell by 1.26 percent, or 42.26 points, to 3,300.26.

Only conglomerates remained in the green, although closing flat. Services and industrial saw the biggest drop of 3.18 percent and 1.26 percent, respectively.

Trading remained tepid, with net value turnover at P5.61 billion.

“The local index closed lower, retreating to the 5,900 level, amid concerns over potentially slower Q3 (third quarter) economic growth, adding to the uncertainty,” said Luis Limlingan, head of sales at Regina Capital Development Corp.

“Market sentiment remained cautious as investors assessed the potential impact of weaker growth and heightened geopolitical risks,” he added.

The months-long war between the United States and Iran began late in February, disrupting oil supply following the closure of the vital Strait of Hormuz. Some bombings have also destroyed key energy infrastructure, sending global oil prices soaring.

READ: Oman says Strait of Hormuz talks with Iran, Gulf states postponed

Toby Allan Arce, head of sales trading at Globalinks Securities and Stocks Inc., also said that investors continued to adopt a cautious stance as the US Federal Reserve is seen hiking interest rates.  

“Persistent peso weakness and elevated oil prices continued to weigh on the domestic inflation and monetary-policy outlook,” Arce added.

DigiPlus Interactive Corp. was the index’s top gainer, jumping by 1.51 percent to P8.73. Semirara Mining and Power Corp. was the main laggard, falling 5.01 percent to P16.70.

The market closed with 54 advancers, 139 decliners, with 58 unchanged. /pai