PSEi sinks below 5,700 on economic woes

Philippine stocks fell for a third straight session on Wednesday as concerns over economic growth, rising US treasury yields and a weak peso dampened investor sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) lost 1.03 percent, or 58.92 points, to close at 5,679.48.

Philstocks Financial Inc. said growth worries intensified after Budget Assistant Secretary Romeo Matthew Balanquit warned that the risk of a severe El Niño could slow public infrastructure spending early next year.

Infrastructure spending is a key driver of economic activity. A slowdown could weigh on construction and other industries connected to government projects.

Negative cues from Wall Street also dragged on the local market as US long-term treasury yields continued to climb, Philstocks added.

Foreign investors ended the session as net sellers, with outflows reaching P950.67 million.

Despite the decline, trading activity was strong. Net value turnover reached P7.9 billion.

Most sectoral indices finished in negative territory. Conglomerates were the only gainers after rising by 0.21 percent.

Services suffered the steepest loss, shedding 1.21 percent.

Among index members, Ayala Corp. led the gainers after advancing by 2.04 percent to P500 per share.

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Renewable energy company ACEN Corp., meanwhile, was the session’s biggest laggard. It plunged by 4.58 percent to finish at P2.50 per share.

Analysts said the latest decline extended the market’s losses as investors continued to assess risks to economic growth and the direction of global interest rates.

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