PHILIPPINE STOCKS remained in the negative territory on Wednesday, with the index sinking back to the 5,600 level, dragged by selling pressure and concerns over the country’s economic outlook.
The Philippine Stock Exchange index (PSEi) plunged by 1.48% or 84.31 points to close at 5,617.23, while the broader all shares index dropped by 0.77% or 24.49 points to 3,158.86.
The PSEi traded at the 5,600 level the entire session, opening at 5,665.91, down from Tuesday’s close of 5,701.54. Its high was 5,697.19, while its closing level was also its intraday low.
“The local index ended lower, retreating to the 5,600 level as selling pressure on index heavyweights weighed on market performance,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Investor sentiment was also dragged by the International Monetary Fund’s (IMF) warning that the Philippines could record one of the region’s weakest economic growth rates amid weak investment and elevated inflation, he said.
In its latest World Economic Outlook released on Tuesday, the IMF said it expects Philippine gross domestic product to grow by 3.4% this year, slowing from the post-pandemic low of 4.4% last year.
This puts the Philippines behind most economies in the Association of Southeast Asian Nations. Vietnam is projected to post the fastest growth at 8.4%, followed by Malaysia (5.2%), Indonesia (5.1%), Singapore (5%), Lao People’s Democratic Republic (4.5%), and Timor-Leste (4%).
Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said the sell-off in stocks of International Container Terminal Services, Inc. weighed on the index as its share price dropped by 6.59%.
“Aside from the index heavyweight sell-off, lingering headwinds including elevated oil prices and bond yields, and the peso’s weakness weighed on the market,” he said in a Viber message.
Four of six sectoral indices closed in the red. Services sank by 4.97% to 152.43 points to 2,913.55; property dropped by 0.07% or 1.14 points to 1,737.78; industrials shed 0.01% or 0.86 point to 7,382.14; and holding firms edged down by 0.01% or 0.37 point to 4,240.95.
Meanwhile, financials increased by 0.99% or 17.27 points to 1,756.41, and mining and oil went up by 0.51% or 97.12 points to 19,239.67.
Decliners outnumbered advancers, 103 to 66, while 76 names were unchanged.
“GT Capital Holdings, Inc. was the day’s index leader, rising 4.65% to P446,” Mr. Tantiangco said.
Value turnover increased to P6.51 billion on Wednesday with 779.08 million shares traded from the P4.29 billion with 862.08 million issues that changed hands on Tuesday.
Net foreign selling climbed to P902.34 million from P468.75 million previously. — Sheldeen Joy Talavera