THE Philippine Stock Exchange index (PSEi) slipped for the second straight day on Wednesday, losing 0.42 percent, or 25.20 points, to close at 5,946.78, as investors stayed cautious amid lingering geopolitical uncertainty and mixed corporate earnings results.
However, the local currency recovered on amid expectations of another rate hike by the Bangko Sentral ng Pilipinas (BSP).
Sentiment remained fragile as the United States and Iran continued to operate without a peace agreement, while market participants also monitored developments in ongoing US-China talks for possible clues on the global economic outlook.
Trading activity picked up, with net value turnover reaching P7.34 billion. Foreign investors, meanwhile, turned net buyers with inflows amounting to P284.85 million.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the market continued to struggle with uncertainties surrounding the US-Iran conflict, while investors also digested mixed first-quarter corporate earnings reports, some of which disappointed expectations.
For his part, Regina Capital Development Corp. head of sales Luis Limlingan said investors adjusted positions following the MSCI Philippines Index rebalancing, which triggered selling pressure on select stocks.
He added that the market also remained reactive to ongoing earnings releases, resulting in selective trading across sectors.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the market was likewise weighed down by weaker earnings from some listed firms, political noise at home and elevated oil prices linked to continuing tensions in the Middle East.
Only banks finished in positive territory, gaining 0.81 percent, while industrials led the decliners with a 1.64-percent drop.
Market breadth was negative, with 116 decliners against 73 advancers, while 67 issues were unchanged.
Among index stocks, Universal Robina Corp. led the gainers, climbing 2.98 percent to P62.30, while Converge ICT Solutions slumped 11.15 percent to P11.00 to become the session’s worst performer.
Meanwhile, the peso strengthened by 10 centavos to P61.38 from Tuesday’s P61.48:$1. It opened at P61.48:$1 and ranged from P61.35 to P61.68.
Trading volume reached P1.803 billion, up from P1.512 billion in the previous session.
Ricafort said the peso strengthened after facing resistance at the P61.60 level, likely due to “intervention or volatility-smoothing measures.”
He also cited expectations of possible further rate hikes by the BSP following the latest inflation reading, which hit a three-year high of 7.2 percent year on year.
