PSEi falls below 6,000, peso weakens further as corruption woes escalate
The local stock barometer broke the 6,000 barrier on Monday while the peso slipped further into the 58 level against the US dollar as alleged corruption in government flood control projects unsettled investors.
The benchmark Philippine Stock Exchange Index (PSEi) slipped to a six-month low of 5,997.60, down by 0.49 percent, extending its losing streak to the sixth consecutive session.
This is its lowest closing value since April 7, when global markets were reacting to US President Donald Trump’s “Liberation Day” tariffs.
Likewise, the broader All Shares Index lost 0.23 percent, or 8.46 points, to close at 3,636.34. A total of 1.37 billion shares worth P4.72 billion changed hands, stock exchange data showed.
Investor confidence further dampened as they priced in the impact of corruption in anomalous flood control projects, said Japhet Tantiangco, research head at Philstocks Financial Inc.
Tantiangco pointed out that traders were considering the country’s economic growth prospects, “including inefficient public spending.”
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said growth was “slowing, confidence is shaky, and corruption is clouding the outlook” for the PSEi.
“The fundamentals are there, but we’re not firing on all cylinders,” Ravelas said.
Foreigners were net sellers, with outflows totaling P405.93 million.
“The steep discount to our peers reflects doubt. If growth downgrades continue, the index could deteriorate further towards the 5,500 levels. The 5,800 support might not hold,” Ravelas said.
Minutes after the market had closed, Sec. Francis Escudero delivered a privilege speech, during which he accused Leyte Rep. Martin Romualdez of orchestrating a “zarzuela” to redirect attention from Congressmen supposedly behind the anomalous flood control projects.
He likewise accused the former House Speaker of pushing for the “unconstitutional” impeachment of Vice President Sara Duterte.
The services subsector saw the steepest loss as index heavyweight International Container Terminal Services Inc. lost 2.63 percent to close at P481 each.
BDO Unibank Inc. was the most actively traded stock as it shed 2.6 percent to P135 each. Others were RL Commercial REIT Inc., down 0.13 percent to P7.55; Bloomberry Resorts Corp., up 2.93 percent to P4.22; Philex Mining Corp., up 5.64 percent to P8.24; and Apex Mining Co. Inc., up 9.7 percent to P10.52 each.
Losers outnumbered gainers, 106 to 100, while 58 companies closed unchanged.
Bearish peso
The weakening peso added to the negative sentiment, said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.
The peso closed at 58.145 against the dollar, down by half a centavo from Friday’s 58.10 finish, Bankers Association of the Philippines data showed.
The local currency briefly strengthened to 57.945 before paring gains. The dollar itself eased on worries about a potential government shutdown in the United States.
Traders said the flood-control scandal continued to weigh heavily on sentiment.
“A further deterioration of the currency above the 58.50 levels will accelerate the market’s fall. The close above the 58 levels marks [that] the market is already pricing the political noise,” Ravelas said.
The peso “opened lower because of fewer dovish Fed expectations after U.S. PCE (personal consumption expenditure) data came in as expected, but downside was still limited due to [local] corruption issues,” one trader said.
