PSEi falls as profit-taking, war weigh on sentiment

By Alexandria Grace C. Magno, Reporter

THE Philippine Stock Exchange index (PSEi) edged lower on Tuesday as investors booked profits amid renewed concerns over the Iran war’s impact on global oil supply and weaker domestic economic signals.

The benchmark index slipped 0.24% or 14.87 points to close at 5,971.98, while the broader all-share index fell 0.33% or 11.44 points to 3,376.99.

The PSEi opened slightly higher at 5,993.63 versus Monday’s close of 5,986.85. It climbed to an intraday high of 5,999 before sliding to a low of 5,958.9 and settling below the 6,000 level at the close.

Market participants said the US-Israel war on Iran and profit-taking drove the decline. Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said sentiment was affected by weakening expectations of a US-Iran agreement.

“The local market declined amid waning hopes towards a peace deal between the US and Iran,” he said in a Viber message, adding that US rejection of Iran’s counterproposal and remarks from US President Donald J. Trump suggesting a fragile cease-fire weighed on confidence.

He added that higher global oil prices and a weaker peso, which slipped back below the P61-a-dollar level, also pressured the market.

Luis A. Limlingan, head of sales at Regina Capital Development Corp., said investors also took profits following the previous session’s gains, while softer foreign investment data added to caution.

“Market sentiment was further dampened by lower year-on-year foreign direct investment inflows, while the depreciation of the local currency also weighed on investor confidence,” he said via Viber.

Data from the Bangko Sentral ng Pilipinas showed net foreign direct investment inflows fell 31% year on year to $590 million in February from a year earlier. On a monthly basis, inflows rose 33%, marking a three-month high.

Sectoral performance was mixed. Mining and oil led gains, rising 2.09%, followed by financials, which added 0.68%, and services, which edged up 0.24%.

On the other hand, industrials dropped 1.55%, property declined 1.38% and holding firms shed 0.1%.

Among index stocks, Aboitiz Equity Ventures, Inc. was the top gainer, rising 3.63% to P29.95. Jollibee Foods Corp. was the biggest laggard, falling 10.67% to P144.

Market breadth was negative, with 107 losers against 78 winners, while 62 stocks were unchanged.

Value turnover rose to P9.44 billion from P5.43 billion in the previous session, with 1.22 billion shares traded.

Net foreign selling narrowed to P107.55 million from P146.61 million a day earlier.