PSEi down due to negative US sentiment

The Philippine Stock Exchange (PSEi) ended the week down 63.33 points, or nearly 1 percent, to close at 6,315.93 as investors took profits from the three-day rally amid negative sentiment from the United States.

Japhet Tantiangkou, Senior Research Analyst at Philstocks Financial Inc. and Regina Capital Development Corp. and Managing Director Louis Lemlingan and Chief Economist at Rizal Commercial Banking Corp. Michael Rycafort, There are also various concerns about the negative repercussions of the weakness of the US economy on the Philippine economy. Which affected the active investors in the local stock exchange. This led to investors taking profits.

“Philippine stocks were sold off to close out the month after back-to-back bargain-hunting sessions as they became wary of US gross domestic product (GDP) data for two consecutive quarters, technically equivalent to a recession. US economic growth fell 0.9 percent in the second quarter, Missing a consensus estimate of 0.3 percent, Lemlingan noted.

Meanwhile, Lemlingan said that the governor of Bangkou Central, Philip Medala, acknowledged that the Fed’s action, along with weakening global growth prospects, could affect foreign exchange movements in emerging market economies, including the Philippines. The local monetary board will hold its fifth policy review meeting on August 18, with Medala already hinting at a possible 25 to 50 basis point rate hike.

Ricafort added that there are still equivalent positive factors, such as the appreciation of the peso exchange rate, the continuous decline in global crude oil prices, and the downward correction of other global commodity prices resulting from the relative stability of oil prices in the past three weeks, which remained below the required level. $110 per barrel.

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In its report, the Associated Press indicated that the price of US crude rose $1.98 to $98.40 a barrel in electronic trading on the New York Mercantile Exchange. It lost 84 cents to $96.42 on Thursday.

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

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

Foreigners were net buyers with net inflows of 1.97 billion pesos.

Services led the sectors, adding 0.63 percent with holding companies losing 2.38 percent.

Losers rose from 116 to 74, while 50 securities remained unchanged.

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