Oil, peso woes drag down PSEi below 6,100 level
Philippines stocks slipped below the 6,100 level on Friday as rising global oil prices and a weak peso stoked concerns over renewed inflationary pressures.
The benchmark Philippine Stock Exchange Index (PSEi) went down 0.61 percent, or 37.42 points, to close at 6,061.81.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said inflation concerns weighed on market sentiment as Brent crude climbed past $100 per barrel.
The weakness of the peso added to investors’ worries, with both factors posing upside risks to consumer prices.
Higher global bond yields likewise dampened appetite for local equities, said Tantiangco.
Luis Limlingan, head of sales at Regina Capital Development Corp., said elevated oil prices raised concerns about inflation and macroeconomic indicators, weighing on overall market sentiment.
“Meanwhile, the weaker local currency further encouraged investors to reduce risk exposure, keeping market pressure in place,”
Limlingan said.
Trading remained tepid, with net value turnover reaching P5.83 billion.
Foreign investors also continued to pull funds out of the local market, ending the session as net sellers with net outflows of P999.47 million.
Nearly all sectoral indices finished in negative territory. The property sector was the lone exception, closing flat.
Mining and oil suffered the steepest decline, shedding 3.27 percent.
Among index members, Century Pacific Food Inc. bucked the broader market downturn. The stock jumped 5.31 percent to P33.70, making it Friday’s top PSEi performer.
GT Capital Holdings Inc., meanwhile, led the laggards. Shares of the conglomerate dropped 3.44 percent to P448.80.
Analysts said the market’s decline reflected growing caution over the inflation outlook as expensive oil and a weaker local currency threaten to raise costs.
Persistent foreign selling and rising global bond yields added pressure, while subdued trading indicated that investors remained cautious amid uncertainties at home and abroad.
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