Philippine shares slip again as investors pocket gains

Philippine stocks dropped anew on Thursday as investors pocketed their gains from the market’s recovery and lingering concerns over the economy’s state.

The bellwether Philippine Stock Exchange index (PSEi) fell by 0.59% or 35.57 points to close at 5,969.13, while the broader all shares index decreased by 0.24% or 8.54 points to end at 3,538.11.

The PSEi opened the session at 6,005.45, a shade better than Wednesday’s finish of 6,004.70. However, this was already its intraday peak. It fell to a low of 5,929.67 and was unable to return above the 6,000 line before the closing bell.

The market has been alternating between gains and losses in the past few days after the index hit a one-month high of 6,021.59 on Monday.

“Philippine equities bucked the regional upswing as the index took another breather following the recent four-day rally,” AP Securities, Inc. said in a market note.

“The PSEi closed lower as investors locked in gains from the previous session. Sentiment also softened amid caution over Fitch’s recent warning on potential risks to the Philippines’ credit standing. The concern raised added pressure as markets weighed its possible impact on economic performance,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Fitch Ratings said in a report on Wednesday that political concerns could pose a risk to emerging markets in Asia Pacific, including the Philippines, noting how the corruption scandal involving flood control projects affected economic growth in the third quarter.

Fitch rates the Philippines at “BBB” with a stable outlook.

Meanwhile, on Thursday, S&P Global Ratings affirmed its “BBB+” long-term sovereign credit rating for the country and its positive outlook.

It said that while the slowdown in public investment due to the flood-control probe has affected economic growth, they expect the impact to be temporary as long-term prospects remain “healthy.”

“Despite heightened political pressures, we believe the government will continue to adhere to the well-established medium-term fiscal framework that has delivered constructive development outcomes.”

Most sectoral indices declined on Thursday. Financials slumped by 2.2% or 44.70 points to 1,978.85; services decreased by 1.44% or 34.88 points to 2,375.08; mining and oil went down by 1.24% or 166.26 points to 13,187.42; industrials fell by 0.83% or 72.25 points to 8,549.77; and property slipped by 0.08% or 1.81 points to 2,208.95. Meanwhile, holding firms jumped by 2.01% or 94.38 points to 4,772.53.

Decliners outnumbered advancers, 110 to 80, while 63 names were unchanged.

Value turnover went down to PHP 5.58 billion on Thursday with 1.31 billion shares traded from the PHP 12.25 billion with 1.19 billion issues exchanged on Wednesday.

Net foreign selling was at PHP 1.01 billion, a reversal of the PHP 2.38 billion in net buying on Wednesday. — A.G.C. Magno