MANILA, Philippines — Local stocks fell for a third straight session on Friday, closing at their lowest level this year as a weaker peso and a downgrade to the country’s growth outlook weighed on sentiment.
The benchmark Philippine Stock Exchange Index (PSEi) shed 67.06 points, or 1.18 percent, to close at 5,593.49, slipping below 5,600.
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Philstocks Financial Inc. said investors continued to take profits as they digested recent corporate earnings reports.
Fitch Solutions’ BMI also cut its growth forecast for the Philippines, adding to economic concerns.
The peso came under renewed pressure after the latest US inflation data bolstered expectations of a Federal Reserve rate hike, Philstocks said.
Investors also stayed cautious ahead of next week’s Asean Summit, where regional leaders will discuss economic and geopolitical issues.
Net value turnover reached P5.19 billion. Foreign investors were net sellers, with net outflows of P260.51 million.
Financials were the only sector to advance, gaining 0.99 percent.
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Among index constituents, Puregold Price Club Inc. led the gainers, rising 4.11 percent. Meanwhile, International Container Terminal Services Inc. was the biggest decliner, falling 4.23 percent.
Head of sales trading at Globalinks Securities and Stocks Inc., Toby Allan Arce, said a decisive break below the 5,580 to 5,600 support zone could trigger more selling.
Arce pegged initial resistance at 5,700 to 5,750, saying a sustained move above that range would improve the near-term outlook if backed by higher turnover and broader market participation. /pai