Stocks remain in red for 4th straight session
MANILA, Philippines — A slowdown in the country’s foreign direct investment (FDI) inflow in August further dampened investor sentiment, resulting in a fourth straight loss for the local stock market.
The benchmark Philippine Stock Exchange index (PSEi) stayed below the 7,000 level during yesterday’s session, kicking off the week on a sour note as it retreated by 0.53 percent or 37.17 points to settle at 6,940.01.
The broader All Shares index also remained in the negative territory, declining by 0.43 percent or 16.78 points to 3,867.02.
“Local shares opened the week in the red as investors digested the latest FDI data from the Bangko Sentral ng Pilipinas. According to BSP data, FDIs, including equity capital, reinvested earnings and borrowings, dropped by 14.5 percent year-on-year to $813 million in August, indicating potential caution among foreign investors,” Luis Limlingan of Regina Capital said.
RCBC chief economist Michael Ricafort said the softer net FDI data brought the PSEi to its second straight trading session below the psychological 7,000-mark.
“The underlying upward trend for four months already remains intact for as long as it remains above the immediate support at 6,710 to 6,880 levels,” Ricafort said.
On top of the August FDI results, AP Securities research head Alfred Benjamin Garcia said that the market is still pricing in the results of the US election, the potential impact of the second Trump presidency on the global economy and the weaker-than-expected third quarter gross domestic product growth of the country.
Sectoral gauges were mostly in the red, with mining and oil taking the deepest plunge at 2.61 percent.
The financials index posted the only gains, increasing by 0.31 percent.
Market breadth was negative as decliners crushed advancers, 118 to 70, while 55 stocks were unchanged.
Trading was thin, with net value turnover amounting to P3.51 billion.
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