PSEi declined due to negative US sentiment

The Philippine Stock Exchange Index (PSEi) ended the week down 63.33 points, or nearly 1 percent, to 6315.93 as investors profited from the previous three-day rally amid negative US sentiment.

Japhet Tantiangko, Senior Analyst at Philstocks Financial Inc., Regina Capital Development Corp. Managing Director Louis Limlingan and Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said there are various concerns about the negative impact of the weakening US economy on the Philippine economy, which is putting pressure on active investors in the local stock exchange. This led to investors taking profits.

“Philippines stocks were sold at the end of the month after consecutive bargain-hunting sessions as they became wary of negative US GDP (gross domestic product) data for two consecutive quarters, technically in line with a recession. US economic growth fell by 0.9. percent in the second quarter, which is not in line with the consensus forecast of 0.3 percent,” said Limlingan.

Meanwhile, Limlingan said Bangko Sentral ng Pilipinas Gov. Felipe Medalla acknowledged that the Federal Reserve’s actions, combined with a worsening global growth outlook, could affect exchange rate movements in emerging markets, including the Philippines. On August 18, the local currency board will hold its fifth policy review meeting, at which Medalla has already hinted at a possible rate hike of 25 to 50 basis points.

Ricafort added that positive factors such as a stronger peso exchange rate, the continued decline in world crude oil prices and a downward correction in world commodity prices as a result of the relative stability of oil prices over the past three weeks remaining below the market are still at work. $110 per barrel.

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An Associated Press report notes that US benchmark oil rose $1.98-$98.40 a barrel in electronic trading on the New York Mercantile Exchange. On Thursday, it lost 84 cents to $96.42.

On the other hand, Brent rose $1.68 to $108.82 a barrel.

Trade improved with net turnover of 5.54 billion pesos, up from 4.42 billion pesos on Thursday but still below the year-to-date average of 6.32 billion pesos.

Foreigners were net buyers with a net inflow of 1.97 billion pesos.

Services led the sectors, gaining 0.63 percent, while holding companies lost the most, shedding 2.38 percent.

Falling stocks outperformed gainers from 116 to 74, while 50 securities remained unchanged.