THE Philippine Stock Exchange index (PSEi) fell below its 5,800-support level on Wednesday as concerns over inflation, economic growth, and external trade conditions continued to weigh on investor sentiment, while the peso ended flat against the US dollar.
The PSEi dropped by 19.42 points, or 0.33 percent, to finish at 5,795.14, its lowest close in more than three months.
According to Japhet Tantiangco, research manager at Philstocks Financial Inc., weak confidence in the local economy amid inflation and growth concerns continued to pressure the market, with the rise in local Treasury yields further weighing on equities.
Tantiangco said that trading activity was brisk, with net value turnover reaching P7.79 billion. Foreign investors remained net sellers, recording net outflows of P1.04 billion.
Only the property sector ended higher, gaining 0.45 percent. The rest closed in negative territory, with services posting the steepest decline at 0.73 percent.
Luis Limlingan, head of sales at Regina Capital Development Corp., noted that selling pressure persisted amid continued uncertainty over the US-Iran conflict.
He added that the country’s widening trade deficit in the first half further dampened market sentiment.
Trading ended with 77 gainers, 105 decliners, and 62 stocks unchanged.
GT Capital Holdings Inc. was the day’s index leader, climbing 3.13 percent to P428, while Metropolitan Bank and Trust Co. was the main index laggard, falling 1.77 percent to P61.00.
Meanwhile, the local currency ended the day flat at P62.725:$1, unchanged from Tuesday.
It opened at P62.49, trading between its opening level and P62.695 during the session. Trading volume dropped to $952.45 million from $1.283 billion in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso stayed flat as global crude oil prices remained relatively steady.
