PSEi slips on Mideast woes, inflation jitters

MANILA, Philippines – Local stocks fell on Tuesday as investors stayed on the sidelines amid renewed geopolitical tensions in the Middle East and caution ahead of the release of the Philippines’ July inflation data.

The benchmark Philippine Stock Exchange Index (PSEi) fell 0.60 percent, or 38.08 points, to close at 6,296.64.

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Philstocks Financial Inc. said market sentiment weakened after Iran denied reports that negotiations with the US for a possible deal were underway.

The development pushed global oil prices higher and weighed on the peso, prompting investors to trim risk exposure.

Market participants also adopted a wait-and-see stance before the release of July inflation figures, further dampening trading activity.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse ended lower as investors locked in profits following the previous session’s gains.

“As a result, the PSEi consolidated around the 6,300 level amid continued profit-taking and subdued buying interest,” Limlingan said.

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Despite the decline, foreign investors remained buyers, posting net inflows of P249.91 million.

However, overall participation stayed muted, with net value turnover reaching only P4.29 billion.

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READ: Poll: Q2 PH growth likely slowed to 2.7%

Mining stocks bucked the broader market weakness, emerging as the day’s best-performing sector after gaining 0.55 percent.

Property counters suffered the steepest losses, falling 1.05 percent.

Advancers were also scarce, with only six PSEi constituent stocks ending in positive territory.

Among individual issues, Century Pacific Food Inc. led the benchmark gainers after climbing 3.86 percent to P32.25.

Meanwhile, Ayala Land Inc. was the session’s biggest drag, declining 3.75 percent to P15.40.

Ron Acoba, chief investment strategist at Trading Edge, said ALI’s stocks fell on concerns that it could be removed from the MSCI Philippines Index, with the latest index review and constituent changes set to be announced on August 12. /pai INQ