Rising state debt stock stops PSEI green streak
Despite news of easing inflation, the local bourse was unable to sustain its winning streak on Friday, due mainly to the government’s record-high debt.
By the end of the session on Friday, the benchmark Philippine Stock Exchange Index (PSEi) slipped by 0.23 percent, or 14.74 points, to 6,492.75. Meanwhile, the broader All Shares Index declined by 0.2 percent, or 6.88 points, to 3,508.99.
A total of 454.88 million shares worth P4.24 billion changed hands, stock exchange data showed.
According to Philstocks Financial Inc., the market was mostly green as investors cheered the slower 3.7-percent inflation rate in June, which raised the possibility of a rate cut in August.
“However, sentiment was dampened by the national government’s outstanding debt reaching a record high,” said Claire Alviar, research analyst at Philstocks.
The government’s debt stock reached P15.35 trillion at the end of May due to the weakening of the peso, according to the Bureau of Treasury.
Banks led the gainers with a 0.22-percent rise on Friday, buoyed by BDO Unibank Inc. and Bank of the Philippine Islands (BPI).
Meanwhile, declines in services-focused companies such as International Container Terminal Services Inc. (ICTSI) and Globe Telecom Inc. pulled down the subsector, which slipped by 1.44 percent.
Gokongwei-led Universal Robina Corp. was the most actively traded stock as it closed unchanged at P109 per share.
It was followed by Ayala Land Inc., up 0.17 percent to P29.25; BDO, up 0.43 percent to P138.80; Metropolitan Bank and Trust Co., down 0.91 percent to P65; and BPI, up 0.59 percent to P119 each.
ICTSI dipped by 2.44 percent to P360; Ayala Corp., down 0.44 percent to P568; SM Prime Holdings Inc., unchanged at P28.65; Jollibee Foods Corp., up 1.12 percent to P234; and LT Group Inc., down 1.06 percent to P9.30.Losers edged out gainers, 94 to 90, while 63 companies closed unchanged.
