PSEi snaps 2-day rally on profit-taking

MANILA, Philippines —Local stocks fell on Thursday, ending a two-day rally as investors took profits amid renewed tensions in the Middle East and economic concerns weighing on sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) shed 1.23 percent, or 78.39 points, to close at 6,288.25.

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Philstocks Financial Inc. said investors turned cautious amid geopolitical risks in the Middle East and worries over the general economic outlook.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the local index ended lower as investors reacted to the MSCI Philippine Index latest review, which triggered selling pressure on select names.

“The peso’s depreciation against the US dollar further weighed on sentiment, prompting a more cautious stance among market participants,” Limlingan said.

Guarded trading

Trading remained tepid, with net value turnover reaching P5.25 billion. Foreign investors added to the selling pressure, posting net outflows of P3.45 billion during the session.

Nearly all sectoral indices finished in negative territory. Banks were the lone exception, gaining 0.13 percent.

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Property stocks bore the brunt of the selloff, with the sector plunging 3.74 percent.

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Among index members, Metropolitan Bank & Trust Co. led gainers after advancing 2.68 percent to P68.95.

SM Prime Holdings Inc., meanwhile, was the session’s biggest index laggard, tumbling 7.05 percent to P18.20.

Analysts said market sentiment has remained sensitive to developments in the Middle East, with investors watching for signs of whether geopolitical tensions could escalate and spill over into oil prices and other financial markets.

The peso’s renewed weakness also provided another headwind for equities, while the sizable foreign outflow reflected cautious sentiment among offshore investors.

Despite Thursday’s decline, the PSEi remained above the 6,200 level as investors continued to assess corporate earnings and other catalysts that could determine the market’s next direction. /pai