PSEi spooked by peso free fall, MidEast war
Local stocks closed lower on Thursday, as early selling pressure dragged the main index into the red, weighed down by peso’s weakness and global uncertainties.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.61 percent or 36.83 points, to close at 6,018.62.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the market decline came as the peso dropped to a record low against the US dollar. This followed the US Federal Reserve’s decision to keep interest rates unchanged.
“The ongoing uncertainty in the Middle East, which continues to impact oil prices, further weighed on market sentiment. However, late-session buying interest helped trim the index’s losses,” Limlingan said.
Market breadth remained negative, with decliners outpacing advancers, 133 to 61, while 55 issues were unchanged.
Among individual stocks, IPM Holdings Inc. emerged as the top gainer, surging 25 percent to P2.25, while Phinma Corp. advanced 9.46 percent to P15.50.
Cirtek Holdings Philippines Corp. led the decliners, plunging 16.9 percent to P8.31, followed by Dominion Holdings Inc., which dropped 12.44 percent to P5.42.
Limlingan said the late buying interest suggested that some investors were bargain-hunting after the initial sell-off, helping cushion the decline of the main index.
Still, the overall session reflected cautious sentiment, as investors continued to grapple with external risks, particularly currency volatility and geopolitical turmoil that could affect inflation and interest rate expectations.
Wendy Estacio-Cruz, head of research at Unicapital Securities, said the ongoing geopolitical conflicts would remain an overhang. She said persistent inflation and global uncertainties would also likely keep financial conditions tight and cap near-term upside.
