Stocks slide for five days straight; peso strengthens

The Philippine Stock Exchange Index (PSEi) fell 0.44 point, or 0.01 percent, to 5,629.03 on Friday, while the peso strengthened 24 centavos, or 0.38 percent, to P62.535 per US dollar from Thursday’s P62.775 close, as investors weighed persistent inflation risks, weak manufacturing activity and elevated global oil prices and bond yields.

Five-day losing streak

The local market extended its losing streak to five sessions, although Friday’s decline was marginal as investors appeared to remain cautious ahead of next week’s inflation report.

The Bangko Sentral ng Pilipinas has projected September inflation at 6.4 percent to 7.4 percent, compared with 6.1 percent in August, with higher food and fuel costs and the weaker peso among the factors expected to push prices higher.

Adding to concerns over domestic growth, the S&P Global Philippines Manufacturing Purchasing Managers’ Index fell to 49.6 in September from 54.9 in August, slipping below the 50-point level that separates expansion from contraction.

Reports said weak demand, stronger international competition and high oil prices weighed on factory output, new orders and employment.

The PSEi’s performance was mixed across sectors. Property led the gainers, advancing 0.44 percent, while Services posted the steepest decline at 0.47 percent. Trading remained subdued, with value turnover at P5.56 billion, while foreign investors were net sellers with P1.25 billion in outflows.

DigiPlus Interactive Corp. was the day’s top index performer, rising 5.96 percent to P8.00, while Semirara Mining and Power Corp. was the biggest laggard, falling 4.96 percent to P13.40.