Philippine stocks fall, track weaker US markets

Philippine shares slipped for the third straight day on Thursday as investor sentiment was affected by weaker US markets.

The 30-member Philippine Stock Exchange Index (PSEi) fell by 0.93% or 61.64 points to close at 6,510.87, while the broader all-share index dropped by 0.73% or 25.45 points to 3,451.21. 

“Investors seemed to have weighed negative factors offshore. Firstly, it tracked losses from Wall Street overnight amid rising US long-term treasury yields,” Mikhail Philippe Q. Plopenio, research and engagement officer at Philstocks Financial, Inc., said in a Viber message. 

On Jan. 17, the Dow Jones Industrial Average fell by 0.25% or 94.45 points to 37,266.67, while the S&P 500 Index declined by 0.56% or 26.77 points to 4,739.21. The Nasdaq Composite Index declined by 0.59% or 88.73 points toBy Keisha B. Ta-asan, Reporterex fell by 0.7% or 116.55 points to 16,522.83. 

“The stronger-than-expected US retail sales data, which rose 0.6%, tempered near-term rate cut hopes by the Federal Reserve,” Mr. Plopenio said. “The tension in the Red Sea is also being monitored by many as disruptions could arise if the situation escalates.”

The local bourse declined amid China’s slower economic growth, Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

On Jan. 17, China’s National Bureau of Statistics said economic output rose by 5.2% in the fourth quarter, quicker than 4.9% in the third quarter but below the 5.3% growth estimate in a Reuters poll. China’s full-year growth was also 5.2% in 2023, faster than 3% in 2022.

PSEi’s sectoral indices declined across the board, led by mining and oil which fell by 1.69% or 157.72 points to 9,148.03. Property went down by 1.65% or 46.80 points to 2,789.22, while financials retreated by 0.78% or 14.46 points to 1,823.74.

Services shed 0.7% or 11.39 points to 1,612.94; holding firms decreased by 0.64% or 40.84 points to 6,249.50; and industrials dropped by 0.6% or 54.63 points to 8,993.82.

“Among the index members, Bloomberry Resorts Corp. was at the top, climbing 2.58% to PHP 9.95. JG Summit Holdings, Inc. lost the most, dropping 3.13% to PHP 38.75,” Mr. Plopenio said. 

Value turnover fell to PHP 5.27 billion and 314.86 million shares on Thursday changing hands compared with PHP 590.13 million issues worth PHP 6.68 billion on Wednesday. 

Decliners beat advancers, 112 to 66, while 51 stocks were unchanged. 

Net foreign buying dropped to PHP 24.42 million from the PHP 63.22 million net foreign inflows a day earlier. — Revin Mikhael D. Ochave