PSEi drops on BoP, car sales woes

The Philippine Stock Exchange index (PSEi), the local bourse benchmark, plunged 1.85 percent to close at 6,335.33 on Tuesday, dragged down by concerns over the country’s widening balance of payments (BoP) deficit and a decline in local car sales.

“The local market plunged as investors dealt with the further widening of the Philippines' balance of payment deficit last April which hit $5.52 billion,” Philstocks Financial Inc. said in a market note.

Sentiment was further dampened by a 10 percent drop in new vehicle sales, which investors interpreted as a sign of softening consumer demand.

Investors wary

Meanwhile, Luis Limlingan, head of Sales at Regina Capital Development Corp., said: “Philippine shares extended their decline as investors grew more wary, opting to scale back their holdings after initial optimism waned following Moody's US downgrade.”

He added that Wall Street saw modest gains as the US Treasury yields eased and oil prices ticked higher amid stalled US-Iran nuclear talks, with Brent crude up 0.20 percent at $65.54 per barrel.

All sectors ended in the red, with the services sector suffering the steepest decline at 2.21 percent. Decliners outnumbered advancers, 126 to 62.

Trading remained active, with net value turnover reaching P6.85 billion — well above the year-to-date average of P5.55 billion. Foreign investors were net sellers, posting net outflows of P886.21 million.

Among index members, LT Group, Inc. led the gainers, rising 1.14 percent to P12.46. Meanwhile, International Container Terminal Services Inc. was the worst performer, sliding 3.85 percent to P400.00.