PSEI falls below 6,000 on growth, peso woes

Local stocks extended their decline on Friday, sending the benchmark index below the 6,000 level as concerns over further monetary tightening and weaker economic growth weighed on investor sentiment.

The Philippine Stock Exchange Index (PSEi) fell 0.8 percent, or 48.25 points, to close at 5,956.33. This marked the PSEi’s lowest close in more than two months, or since June 24, when it last traded at the 5,900 level.

Philstocks Financial Inc. said investors remained concerned about the impact of further Bangko Sentral ng Pilipinas (BSP) monetary tightening on the country’s economic growth outlook.

Sentiment was further dampened after Moody’s Analytics and the Asean+3 Macroeconomic Research Office had trimmed their growth projections for the Philippine economy.

The peso’s slide to a new record low also added pressure to the equities market. Luis Limlingan, head of sales at Regina Capital Development Corp., said the MSCI Philippine Index rebalancing influenced a significant portion of the market volume.

“The rebalancing triggered broad-based selling across the market as investors adjusted their positions.

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Sentiment was further weighed by the recent BSP rate hike, keeping investors cautious,” Limlingan said.

Net value turnover reached P18.12 billion. Foreign investors, however, remained on the selling side, posting net outflows of P3.51 billion.