By Alexandria Grace C. Magno
PHILIPPINE STOCKS slipped to the 6,000 level on Thursday as weak sentiment and a soft peso dragged all sectoral indexes lower.
The benchmark Philippine Stock Exchange index (PSEi) fell 1.08% or 66.44 points to close at 6,042.28, while the broader all shares index dropped 0.78% or 28.79 points to 3,653.5.
AP Securities, Inc. said in a market note that selling pressure continued to weigh on share prices.
“The market continued to decline today, with no green candles seen throughout the week,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “Additionally, the depreciation of the peso against the dollar, with USD/PHP hitting the P58 mark, is weighing on sentiment.”
The peso closed at P58.10 a dollar on Thursday, 63.9 centavos weaker than the previous day’s close, after US Federal Reserve officials signaled caution on further rate cuts due to persistent inflation and a weak job market.
US equities also traded lower as investors assessed Fed comments and the outlook for inflation. Fed Chairman Jerome H. Powell earlier this week gave few hints on the timing of the next rate cuts, after the central bank lowered rates for the first time this year.
“Meanwhile, US equities are trading lower today as investors digest remarks from Fed officials and ponder the persistence of inflation pressures,” Mr. Limlingan said. “The market seems cautious, watching whether fundamentals can support stretched valuations.”
All local sectoral indexes ended in the red. Mining and oil lost 2.81% to 11,929.66; holding firms slid 1.79% to 4,922.35; industrials dropped 1.43% to 8,716.55; property fell 1.35% to 2,361.60; financials eased 0.33% to 2,058.97; and services slipped 0.19% to 2,231.54.
Value turnover rose to P6.97 billion with 2.61 billion shares traded, higher than Wednesday’s P5.26 billion from 5.37 billion shares. Losers beat winners 134 to 64, while 50 stocks were unchanged.
Net foreign buying reached P574.62 million, reversing Wednesday’s P370.63 million in net selling.
