PSEi sinks below 6,100 on MidEast woes
Local stocks retreated sharply on Monday on renewed tension between the United States and Iran, while weak government infrastructure spending added to local growth concerns.
The benchmark Philippine Stock Exchange Index (PSEi) fell 1.64 percent, or 100.33 points, to close at 6,035.02.
According to Philstocks Financial Inc. research manager Japhet Tantiangco, concerns escalated as Iran reportedly closed the Strait of Hormuz again amid allegations that the United States failed to stop attacks against Lebanon. In response, US President Donald Trump threatened possible military action against Iran.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi fell as global crude oil prices rebounded slightly, with Nymex crude trading near $77 per barrel.
The market was also weighed down by April’s public infrastructure spending data, which showed a 52-percent year-on-year decline.
Luis Limlingan, head of sales at Regina Capital Development Corp., noted broad-based foreign selling. Meanwhile, the peso weakened toward the 61:$1 level again.
Net value turnover reached P8.42 billion, while foreign investors ended the session as net sellers with net outflows amounting to P924.26 million.
Most sectoral indices finished in the red. The services sector posted the steepest decline, dropping 3.91 percent. Conglomerates were the lone bright spot, gaining 0.58 percent.
Among index members, telecommunications giant PLDT Inc. led gainers after climbing 4.46 percent to P1,148 per share.
Meanwhile, International Container Terminal Services Inc. was the biggest drag, tumbling 5.69 percent to P861.50 per share.
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