PSEi wanes on Wall Street jitters

Philippine stocks retreated on Thursday as investors took cues from Wall Street’s weak performance and growing geopolitical concerns in the Middle East, offsetting support from renewed foreign buying.

The benchmark Philippine Stock Exchange Index (PSEi) slipped 0.74 percent or 47.29 points to close at 6,305.75.

Philstocks Financial Inc. said sentiment turned cautious after concerns resurfaced that the United States Federal Reserve could be lagging behind the curve in addressing economic risks.

Investor confidence also weakened after the US struck Iran, dimming hopes of renewed negotiations between the two countries.

Luis Limlingan, head of sales at Regina Capital Development Corp., also said the local bourse ended lower as investors reacted to various developments following President Marcos’ State of the Nation Address, particularly those concerning the power sector.

“Market sentiment was also weighed down by the latest Fed [US Federal REserve] decision to leave interest rates unchanged. Overall, cautious trading prevailed as investors assessed the implications of the policy stance and domestic developments,” Limlingan said.

Despite the decline, foreign investors returned to the local market, ending the session as net buyers with inflows of P643.82 million.

Trading, however, remained subdued, with net value turnover reaching only P5.75 billion, reflecting cautious participation.

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Sectoral performance was mixed. Mining and oil stocks posted the biggest gain, rising 1.51 percent, while industrials suffered the steepest decline, dropping 3.81 percent.

Only five index members finished in positive territory. Bank of the Philippine Islands led the gainers, climbing 1.74 percent to P105.20.

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