Global headwinds add pressure to local stocks

MANILA, Philippines — The local stock market closed out April and the shortened trading week in negative territory, as investors opted to stay cautious amid macroeconomic headwinds

The bellwether Philippine Stock Exchange index tumbled by 1.26 percent or 74.25 points, closing at 5,833.64.

The broader All Shares index shed 0.70 percent or 23.40 points to settle at 3,320.20.

RCBC chief economist Michael Ricafort said the PSEi finished lower following the Bangko Sentral ng Pilipinas’ latest inflation estimate for April, which showed it could settle within the 5.6 percent to 6.4 percent range.

He also cited recent signals of lower capital expenditures among some of the country’s largest companies as a contributing factor.

“The index closed at the day’s low of 5,833.64 after the prior session’s technical bounce, pressured by month-end flows and worsening macro headwinds as Brent surged to $122, the peso weakened to 61.5 to $1 and Hormuz remained shut,” AB Capital Securities said.

AB Capital said regional markets also declined, while foreign selling resumed.

All sectors were in the red, led by mining and oil, which plunged by 2.83 percent.

Total turnover value reached P7.65 billion, nearly matching the previous day’s P7.72 billion.

Decliners squashed advancers, 113 to 74, while 58 issues were unchanged.

ICTSI was the session’s top traded stock, declining by 1.39 percent to P710 per share, followed by banking heavyweights BDO and BPI which fell by 1.38 percent and 2.51 percent, respectively, to P114.20 and P89.50.