PSEi dives on PH’s record-high debt

Philippine stocks ended the week lower on Friday as investors weighed the Philippines’ record-high national government debt, lingering geopolitical tensions in the Middle East and a busy week of key economic data ahead.

The benchmark Philippine Stock Exchange Index (PSEi) slipped 1.1 percent or 69.31 points to close at 6,236.44.

Philstocks Financial Inc. said investor sentiment was weighed down after the government’s outstanding debt reached a fresh record of P19.07 trillion.

Uncertainty surrounding the United States-Iran conflict also kept investors on the sidelines.

Market participants likewise turned cautious ahead of several major economic releases next week, including the July inflation rate, the June labor force survey and second-quarter gross domestic product data.

Luis Limlingan, head of sales at Regina Capital Development Corp., said sellers eventually took control of the session, driven by positioning adjustments related to the PSEi rebalancing.

“The increased selling pressure weighed on the broader market and pushed the benchmark lower by the close,” Limlingan said.

Despite the decline, trading activity remained robust, with net value turnover reaching P9.55 billion.

Foreign investors, however, remained sellers, posting net outflows of P1.04 billion.

Sectoral performance was mixed, with the mining and oil index leading the gains after climbing 4.05 percent. The services sector posted the biggest decline, falling 1.57 percent.

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Among index members, Converge ICT Solutions Inc. emerged as the day’s top performer, rallying 6.10 percent to P10.78.

Meanwhile, JG Summit Holdings Inc. was the session’s biggest loser, dropping 3.89 percent to P22.25.

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