PSEi falls on Wall Street jitters

MANILA, Philippines — Local stocks fell on Thursday as investors took cues from Wall Street’s weak performance and growing geopolitical concerns in the Middle East, offsetting support from renewed foreign buying.

The benchmark Philippine Stock Exchange Index (PSEi) slipped 0.74 percent, or 47.29 points, to close at 6,305.75.

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Philstocks Financial Inc. said sentiment turned cautious after concerns resurfaced that the United States Federal Reserve could be lagging behind the curve in addressing economic risks.

Investor confidence also weakened after the US struck Iran, dimming hopes of renewed negotiations between the two countries.

Luis Limlingan, head of sales at Regina Capital Development Corp., also said the local bourse ended lower as investors reacted to various developments following President Ferdinand Marcos Jr.’s State of the Nation Address, particularly those concerning the power sector.

“Market sentiment was also weighed down by the latest Fed decision to leave interest rates unchanged. Overall, cautious trading prevailed as investors assessed the implications of the policy stance and domestic developments,” Limlingan said.

Foreign buying

Despite the decline, foreign investors returned to the local market, ending the session as net buyers with inflows of P643.82 million.

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Trading, however, remained subdued, with net value turnover reaching only P5.75 billion, reflecting cautious participation.

Sectors posted mixed results/ Mining and oil stocks posted the biggest gain, rising 1.51 percent, while industrials suffered the steepest decline, dropping 3.81 percent.

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Only five index members finished in positive territory. Bank of the Philippine Islands led the gainers, climbing 1.74 percent to P105.20.

Meanwhile, Manila Electric Co. emerged as the session’s biggest laggard after tumbling 13.12 percent to P480.

Analysts said the market’s pullback mirrored lingering uncertainty over the global economic outlook and geopolitical developments, although continued foreign buying offered some support amid otherwise cautious trading. /pai INQ