PHILIPPINE stocks retreated sharply on Wednesday, with the benchmark index falling back below the 6,000 mark as investors digested weaker growth expectations, a weaker peso and renewed concerns over the country’s inflation outlook.
The Philippine Stock Exchange index (PSEi) dropped 2.20 percent, or 134.85 points, to close at 5,991.37, erasing the previous session’s gains amid broad-based selling.
Philstocks Financial Inc. research manager Japhet Tantiangco said the market was dragged lower by heavy selling in index heavyweight International Container Terminal Services Inc., which plunged 5.97 percent during the session.
The peso’s depreciation beyond the 61-per-dollar level further weighed on sentiment, while investors continued to assess risks to the country’s growth and inflation outlook.
The peso weakened by 21 centavos to P61.552 against the dollar, a result Rizal Commercial Banking Corp. chief economist Michael Ricafort said was due to the greenback gaining against major global currencies.
Trading activity remained subdued at the stock market, with value turnover reaching P5.77 billion, below the year-to-date average of P6.47 billion and reflecting continued caution among investors.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the market reacted negatively to a series of downgraded growth forecasts for the Philippines.
“The PSEi ended below the 6,000 level as the market reacted negatively to various lowered growth forecasts for the Philippines,” Limlingan said.
“Investor sentiment weakened as concerns over slower economic momentum prompted cautious positioning among market participants. Selling pressure was observed across key sectors as investors reassessed their outlook on domestic growth prospects,” he added.
Sectoral performance was largely negative, with property stocks bucking the trend and posting a 0.53-percent gain, while services recorded the steepest decline, falling 4.22 percent.
Among index members, Ayala Land Inc. emerged as the top gainer, climbing 5.11 percent to P14.80.
Market breadth remained negative, with 104 decliners outnumbering 67 advancers, while 63 issues closed unchanged. WITH A REPORT FROM NIÑA MYKA PAULINE ARCEO
