PSEi slips below 6,000 on growth worries

MANILA, Philippines — Investors have gone on a selling spree over worries that the Philippine economy would struggle to post respectable growth in the third quarter due to currency and inflation risks.

The benchmark Philippine Stock Exchange index (PSEi) yesterday fell by 1.51 percent or 90.84 points to close at 5,916.94, as investors were cowered by economic concerns.

The broader All Shares index also retreated by 1.26 percent or 42.26 points to 3,300.26.

Regina Capital Development Corp. head of sales Luis Limlingan said investors raised concerns over the possibility of slower economic growth in the third quarter.

Limlingan also said that investors are anxious about the absence of a long-term peace deal in the Middle East.

Similarly, investors await the decision of the US Federal Reserve on its monetary policy.

Analysts expect the Fed to raise interest rates to prevent inflation from running away, and this could be countered with an off-cycle hike by the Bangko Sentral ng Pilipinas.

“Market sentiment remained cautious, as investors assess the potential impact of weaker growth and heightened geopolitical risks,” Limlingan said.

RCBC chief economist Michael Ricafort said the PSEi declined for the second straight trading day amid elevated global crude oil prices, thereby exacerbating inflationary pressures that could lead to higher borrowing costs.

The market saw P5.89 billion worth of shares change hands yesterday, as the losers edged out the winners, 139 to 54, though 58 issues were unchanged.

Logistics giant ICTSI was the most actively traded stock yesterday, surrendering 3.76 percent, or P36, to dip to P922 a piece.