Local stocks fell for a third straight session on Wednesday as concerns over economic growth, rising US Treasury yields, and a weak peso dampened investor sentiment.
The benchmark Philippine Stock Exchange Index (PSEi) lost 1.03 percent, or 58.92 points, to close at 5,679.48.
Philstocks Financial Inc. said growth worries intensified after Department of Budget and Management Assistant Secretary Romeo Matthew Balanquit warned that the risk of a severe El Niño could slow public infrastructure spending early next year.
Infrastructure spending is a key driver of economic activity. A slowdown could weigh on construction and other industries connected to government projects.
Negative cues from Wall Street also dragged on the local market as US long-term Treasury yields continued to climb, Philstocks added.
Luis Limlingan, head of sales at Regina Capital Development Corp., also said market sentiment remained cautious after the Bangko Sentral ng Pilipinas warned inflation could accelerate to as high as 7.4 percent in September.
‘This further weighed on investor confidence amid concerns over the potential implications for monetary policy and economic growth,’ Limlingan said.
Cautious sentiment
Foreign investors ended the session as net sellers, with outflows reaching P950.67 million. Despite the decline, trading activity was strong. Net value turnover reached P7.90 billion.
Most sectoral indices finished negative. Conglomerates were the only gainers, rising 0.21 percent. Services suffered the steepest loss, shedding 1.21 percent.
Among index members, Ayala Corp. led the gains, advancing 2.04 percent to P500 per share.
Renewable energy company ACEN Corp., meanwhile, was the session’s biggest laggard. It plunged by 4.58 percent to finish at P2.50 per share.