PSEi tumbles by 1.53% as peso hits new lows

Philippine stocks extended their decline on Monday as worries over weak public infrastructure spending, high inflation and possible further interest rate hikes dampened investor sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) shed 1.53 percent, or 87.45 points, to close at 5,641.18.

Philstocks Financial Inc. said the case for a gloomy economic outlook continued to build, prompting many investors to remain on the sidelines.

The peso’s continued slide to record lows also weighed on the market.

A weaker local currency could worsen inflation by raising the cost of imported goods and inputs.

The Bangko Sentral ng Pilipinas’ possible next moves also remained a concern.

Further rate hikes could temper inflation but place more pressure on consumer spending, business expansion and overall economic growth.

Luis Limlingan, head of sales at Regina Capital Development Corp., said market sentiment was further weighed down by the Philippines’ infrastructure spending contracting for 14 consecutive months, raising concerns over the sustainability of economic growth.

“Persistent cost pressures and weak infrastructure activity continued to cloud the market outlook, keeping investors cautious toward local equities,” Limlingan said.

Trading activity was muted, with net value turnover reaching only P4.61 billion.

The lackluster figure reflected cautious participation amid lingering economic uncertainties.

Foreign investors added to the selling pressure. They ended the session as net sellers, with net outflows of P45.06 million.

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All sectoral indices closed in negative territory. Conglomerates suffered the steepest drop, losing 2.37 percent.

Only five of the 30-member PSEi companies finished the session higher.

Manila Electric Co. led the index gainers after advancing 1.48 percent, bucking the broader market downturn.

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