PSEi sinks to 5-year low

MANILA, Philippines — The Philippine Stock Exchange index (PSEi) sank to its lowest level in more than five years as investors succumbed to selling pressures following softer net foreign direct investments data.

The PSEi tumbled by 0.99 percent or 56.73 points to end yesterday’s session at 5,702.64, while the broader All Shares index shed 0.46 percent or 16.14 points to settle at 3,498.43.

This was the PSEi’s worst finish since closing at 5,570.22 on May 28, 2020.

“Philippine equities bucked the regional upswing in markets following a report showing that foreign direct investments plunged by 40.5 percent in August and by 22.5 percent on a year-to-date basis, providing yet another data point supporting the case for slower economic growth for the remainder of the year,” AP Securities Inc. said.

Luis Limlingan of Regina Capital said the local market ended lower despite cheaper valuations following the release of the country’s third quarter gross domestic product figures last week.

“Investors remain cautious about entering the market as concerns over macroeconomic conditions persist. In addition, more firms are releasing their earnings, contributing to the overall mixed sentiment in the market,” Limlingan said.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the PSEi declined for the second straight trading day on concerns that the series of storms and flooding could further slowdown local economic growth, coupled with news on the latest increase in local fuel prices and higher Meralco electricity rates.

All sectors were in the red, except for mining and oil which surged by 7.19 percent. Services and financials, meanwhile, were the biggest losers, plunging by 1.36 percent and 1.34 percent, respectively.

Total turnover value opened the week at P6.96 billion. Market breadth was negative as decliners edged out advancers, 100 to 85, while 56 issues were unchanged.