PSEi dips below 6,000 on profit-taking, weak sentiment
MANILA, Philippines – Philippne stocks retreated on Thursday as investors locked in gains after two straight days of rallying while geopolitical conflicts dampened sentiment.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.99 percent or 59.7 points to close at 5,984.2.
Philstocks Financial research manager Japhet Tantiangco said the market pulled back as investors took profits, with caution also driven by renewed conflict in the Middle East.
READ: Iran rejects US ceasefire plan, issues its own demands
This followed Iran’s statement that it had no intention of holding talks with the US, clouding prospects of easing geopolitical conflicts.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the Philippine market declined after ending in the green in the previous session. This, as investors engaged in profit-taking and likely maintained short-term positions amid persistent uncertainty in the Middle East.
“Sentiment was further weighed down by inflation concerns, with expectations that price growth could exceed the Bangko Sentral ng Pilipinas (BSP) target ceiling of 4 percent after BSP maintained key policy rate in an off-cycle meeting,” Limlingan said.
READ: BSP holds key rate at 4.25% in off-cycle meet amid Mideast risks
Trading remained subdued, with net value turnover at P4.23 billion, reflecting weak participation among investors.
Foreign funds continued to exit, posting net outflows of P135.29 million for the session.
Mining and oil
Sectoral performance was broadly negative, with only mining and oil posting gains, up 1.14 percent.
The banking sector led the decline, dropping 1.36 percent. The rest of the sectors also finished in the red.
Market breadth was negative as decliners outpaced advancers, 100 to 78.
Monde Nissin Corp. emerged as the top gainer, rising 3.02 percent to P6.49.
DigiPlus Interactive Corp. was the main laggard, plunging 4.60 percent to P17.02.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said the decline mirrored the broader regional downturn. This, as crude oil prices rebounded above $93 after dropping to as low as $87.40 in the previous session.
“Oil prices climbed following reports that Iran rejected the US’ ceasefire proposal, dampening hopes for a resolution to the ongoing conflict. Adding to the downward pressure was the continued weakening of the peso, with the USD/PHP exchange rate reaching a new high of 60.23,” Acoba said. INQ
