PSEi snaps 3-day climb on profit-taking
MANILA, Philippines – Philippine stocks retreated on Thursday as investors locked in gains following a three-day rally, while renewed tensions between the United States and Iran dampened risk appetite and revived concerns over oil prices.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.69 percent or 41.24 points, to close at 5,911.93. The broader all shares index also slipped as most sectors ended in negative territory.
Brokerage Philstocks Financial Inc. said sentiment weakened after reports that Israel and the US were prepared to launch further strikes against Iran if necessary, following Tehran’s latest attacks.
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The development fueled worries that crude oil prices could rise anew, adding pressure on inflation-sensitive markets.
“Investors remained selective in their positioning as they awaited the release of the latest inflation data tomorrow,” Luis Limlingan, head of sales at Regina Capital Development Corp., said. “Cautious sentiment kept overall trading activity measured, with market participants looking for clues on the direction of interest rates and the broader economy.”
Trading activity remained subdued. Net value turnover reached only P6.14 billion, reflecting cautious participation from investors.
Foreign funds likewise stayed on the sidelines, ending the session as net sellers with outflows amounting to P298.93 million.
Among sectoral indices, banks stood out as the lone gainer, advancing 1.29 percent.
The services sector suffered the steepest decline, dropping 2.23 percent, while the remaining sectors also finished lower.
Market breadth was likewise weak as decliners outpaced advancers.
On the corporate front, Century Pacific Food Inc. emerged as the session’s top index performer, climbing 4.37 percent to P26.30.
Meanwhile, Ayala Land Inc. led the losers’ list, tumbling 4.76 percent to P14.00 and weighing on the benchmark index.
Analysts said investors would continue monitoring developments in the Middle East, particularly any escalation that could affect global energy markets.
A sustained increase in oil prices could complicate inflation expectations and cloud the outlook for interest rates, factors that remain closely watched by equity investors. /pai INQ
