PSEi falls back below 5,800

Philippine stocks extended their decline on Wednesday as concerns over inflation and economic growth continued to weaken investor confidence.

The benchmark Philippine Stock Exchange Index (PSEi) shed 0.33 percent, or 19.42 points, to close at 5,795.14.

The PSEi opened at 5,826.48 and climbed to an intraday high of 5,842.03 before losing momentum.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said this marked the PSEi’s lowest level in nearly five months, or since May 29.

Philstocks Financial Inc. said worries over the domestic economy weighed on market sentiment.

Philstocks also said the increase in local treasury yields also dragged down equities.

Despite the market’s decline, trading activity was strong. Net value turnover reached P7.79 billion.

Foreign investors remained on the sidelines, recording net outflows of P1.04 billion. The sustained foreign selling added pressure to an already cautious market.

Most sectoral indices finished in negative territory. Only the property counter escaped the selloff, rising by 0.45 percent.

Services suffered the biggest loss among the sectoral indices after falling by 0.73 percent.

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GT Capital Holdings Inc. led the index gainers, advancing by 3.13 percent to P428 per share.

Metropolitan Bank and Trust Co., meanwhile, was the session’s biggest index laggard. The bank declined by 1.77 percent to close at P61 per share.

Analysts said the market’s latest decline brought the index farther below the 6,000 level as investors assessed the effects of higher yields, inflation risks and a weaker economic outlook.

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