PSEi sinks below 6,000 on ICTSI, peso woes
Local stocks tumbled on Wednesday, with the benchmark index slipping below the 6,000 mark as investors sold down heavyweight stocks, while concerns over the economy and a weaker peso dampened market sentiment.
The Philippine Stock Exchange Index (PSEi) fell 2.2 percent, or 134.85 points, to close at 5,991.37.
According to Philstocks Financial Inc. research manager Japhet Tantiangco, the market decline was largely driven by a sell-off in International Container Terminal Services Inc. (ICTSI), one of the index’s biggest components.
ICTSI dropped 5.97 percent amid lingering rumors of delisting.
Tantiangco also said the peso’s depreciation beyond the 61-per-dollar level weighed on investor confidence. Concerns over the outlook for domestic economic growth and inflation further discouraged buying activity.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the market reacted negatively to various lowered growth forecasts for the Philippines.
“Investor sentiment weakened as concerns over slower economic momentum prompted cautious positioning among market participants. Meanwhile, selling pressure was observed across key sectors as investors reassessed their outlook on domestic growth prospects,” Limlingan added.
Trading remained subdued, reflecting cautious participation among investors. Net value turnover stood at P5.77 billion, below the year-to-date average of P6.47 billion.
Sectoral performance was broadly negative, with only the property sector ending in positive territory. Property stocks gained 0.53 percent, bucking the overall market decline.
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