Stocks drop further as foreign selling continues

Philippine stocks continued to decline on Monday amid selling pressure and weak trading activity due to a lack of leads.

The Philippine Stock Exchange index (PSEi) decreased by 0.24% or 15.22 points to end at 6,140.35, while the broader all shares index slipped by 0.09% or 3.33 points to close at 3,683.55.

This was the PSEi’s worst finish in over four months or since it ended at 6,138 on April 21.

“The PSEi extended its decline this Monday… Profit taking continued amid the lack of a positive catalyst,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The local market was also dragged by foreign fund outflows, with net selling amounting to PHP 148.55 million. The market is already on a six-day net selling streak, with net outflows averaging PHP 784.18 million per day.”

Net foreign selling declined to PHP 148.55 million on Monday from PHP 983.24 million on Friday.

The peso’s recent weakness against the dollar also weighed on the stock market, Mr. Tantiangco said.

“Despite a series of declines in recent days, sellers continue to exert control over the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Moreover, the downturn likely reflects sentiment driven by forecasts suggesting an inflation growth this month as it is affected by the bad weather that stormed the country last month,” he said.

A BusinessWorld poll of 16 analysts conducted last week yielded a median estimate of 1.3% for August headline inflation, picking up from 0.9% in July but slower than the 3.3% clip in the same month in 2024.

If realized, August would mark the sixth month in a row that inflation was below the Bangko Sentral ng Pilipinas’ 2-4% target range.

The Philippine Statistics Authority is scheduled to release the August inflation data on Friday, Sept. 5.

Mr. Limlingan said the market is also awaiting the release of the latest US jobs report for clues on the US Federal Reserve’s next move.

Almost all sectoral indices closed lower on Monday. Holding firms fell by 0.65% or 33.04 points to 5,048.96; services decreased by 0.47% or 10.37 points to 2,184.49; financials declined by 0.29% or 6.18 points to 2,079.32; and industrials retreated by 0.1% or 9.39 points to 9,053.05.

Meanwhile, mining and oil surged by 4.33% or 432.38 points to 10,414.56, and property climbed by 0.08% or 2.14 points to 2,445.74.

“Converge ICT Solutions, Inc. was the day’s index leader, climbing 2.57% to PHP 14.36. China Banking Corp. was the worst index performer, dropping 5.22% to PHP 63.50,” Mr. Tantiangco said.

Value turnover declined to PHP 4.21 billion on Monday with 1.15 billion shares traded from the PHP 6.85 billion with 1.63 billion shares exchanged on Friday.

Advancers outnumbered decliners, 110 to 96, while 55 names were unchanged. — A.G.C. Magno