By Alexandria Grace C. Magno
PHILIPPINE STOCKS edged lower on Wednesday as investors stayed cautious amid weak manufacturing data and concerns over rising unemployment.
The benchmark Philippine Stock Exchange index (PSEi) slipped 0.04% or 2.62 points to close at 6,120.09. The broader all-share index was almost unchanged, down 0.24 points to 3,691.35.
“The decline in manufacturing output likely weighed on sentiment, adding to caution,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “Participants now look to upcoming economic data and earnings to guide their next moves.”
He noted that Wall Street extended its gains overnight, with US benchmarks hitting fresh records after upbeat job data reinforced expectations of policy adjustments by the US Federal Reserve.
Locally, market sentiment weakened further after the Philippine Statistics Authority (PSA) reported that the country’s unemployment rate rose to 5.3% in July, the highest since June 2022, due to hiring disruptions caused by typhoons and monsoon rains.
This translated to 2.59 million jobless Filipinos, up from 2.38 million a year earlier and 1.95 million in June.
Early gains were surrendered as investors digested the unemployment report, which reflected the impact of recent weather disturbances, AP Securities, Inc. said in a market note.
Net foreign selling narrowed to P41.35 million from P215.89 million the previous day.
Sectoral indices were mixed. Services posted the steepest decline, dropping 1.76% or 38.73 points to 2,157.55. Mining and oil fell 0.67% or 77.12 points to 11,307.22, industrials slipped 0.28% or 25.88 points to 8,971.96 and holding firms inched down 0.08% or 4.27 points to 5,045.45.
On the other hand, property rose 1.26% or 31.73 points to 2,532.1, while financials gained 0.88% or 17.93 points to 2,047.53.
Value turnover improved to P7.28 billion with 5.96 billion shares changing hands, higher than Tuesday’s P6.23 billion involving 1.99 billion shares.
Market breadth was positive, with 97 winners beating 91 losers, while 69 stocks were unchanged.