PSEi falls toward 6,000
Philippine stocks fell back near the 6,000-level on Tuesday as rising global oil prices and a weakening peso fueled inflation concerns, while higher bond yields further weighed on investor sentiment.
The benchmark Philippine Stock Exchange Index (PSEi) fell 1.11 percent, or 67.29 points, to close at 6,007.78.
Philstocks Financial Inc. said sentiment was weighed down by the continued rise in global oil prices and the peso’s depreciation to new record lows.
Both developments are seen as upside risks to inflation, which could complicate the outlook for consumer prices and interest rates.
The increase in local and global treasury yields also pressured equities as higher yields made bonds more attractive to investors, Philstocks added.
Trading remained subdued, with net value turnover reaching only P4.91 billion.
Most sectoral indices ended in negative territory. Property shares were the sole exception, gaining 0.17 percent.
Services posted the steepest decline, shedding 2.55 percent.
Among index members, Ayala Land Inc. emerged as the session’s top performer. Shares of the property giant climbed 2.25 percent to P15.46 each.
International Container Terminal Services Inc. was the biggest index laggard. The port operator dropped 3.23 percent to P958 per share.
The latest decline left the PSEi just 7.78 points above the 6,000-mark, with investors continuing to contend with inflation risks and elevated yields.
The market has recently faced pressure from a combination of expensive oil and a weakening peso, both of which could raise costs for the import-dependent Philippine economy.
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