PSEi falters further on economic woes
Philippine stocks extended their decline on Tuesday as renewed concerns over the economy, elevated oil prices and a weak peso dampened investor sentiment.
The benchmark Philippine Stock Exchange Index (PSEi) shed 0.5 percent, or 29.23 points, to close at 5,814.56.
Philstocks Financial Inc. said investors turned cautious after Fitch Solutions unit BMI warned that Philippine economic growth in the third quarter could fall below expectations.
BMI cited delays in public infrastructure projects and tepid household spending as possible drags on economic expansion.
Philstocks added that elevated oil prices, rising local treasury yields and the weak peso continued to weigh on the equities market.
Luis Limlingan, head of sales at Regina Capital Development Corp., said market weakness persisted amid expectations that the third-quarter growth recovery could be weaker than anticipated.
“Market sentiment turned cautious after the Department of Energy said fuel prices may remain above prewar levels through year-end, further clouding the earnings outlook and companies’ profitability,” Limlingan said.
Trading activity remained tepid. Net value turnover reached P5.52 billion, while foreign investors were net sellers with outflows of P1.01 billion.
Most sectoral indices ended in negative territory. Only services managed to advance, rising by 0.86 percent.
Conglomerates recorded the steepest decline after falling by 2.17 percent.
Among index members, Monde Nissin Corp. led the gainers after climbing by 1.48 percent to P6.16 per share.
******
Get real-time news updates: inqnews.net/inqviber
