Index drops for 4th day, falls below 5,800

MANILA, Philippines — The local stock market extended its losing streak to four straight, dropping below the 5,800 mark amid prevailing negative sentiment over the country’s economic growth.

The bellwether Philippine Stock Exchange index slipped by 0.33 percent or 19.42 points, closing yesterday’s session at 5,795.14.

The broader All Shares index also dipped by 0.21 percent or 6.91 points to end at 3,246.44.

Luis Limlingan of Regina Capital said the local index broke below the 5,800 mark as selling pressure persisted amid continued uncertainty surrounding the US-Iran conflict.

“Moreover, market sentiment was weighed by the widening of the trade deficit in the first half,” he said.

Limlingan said investors remained cautious as geopolitical risks and weakening external trade conditions continued to weigh on risk appetite.

“The extended market decline is attributed to weak confidence toward the local economy amid inflation and consequently, growth worries,” Philstocks Financial Inc. said.

Philstocks said the rise in local treasury yields also weighed on the local market.

All gauges were in the red, except for property, which jumped by 0.45 percent. Services index was the biggest loser, shedding 0.73 percent, followed by mining and oil, which dropped by 0.57 percent.

Trading was strong as total value turnover expanded to P8.89 billion from the previous day’s P6.71 billion.

Market breadth remained negative as decliners crushed advancers, 105 to 77, while 62 issues did not change hands.

SM Investments emerged as the session’s top traded stock, falling by 1.75 percent to P504.50 per share, followed by ICTSI and Ayala Corp. which declined by 0.83 percent and 1.02 percent, respectively, to P900 and P485.