The Philippine stock market extended its losing streak to the fifth successive trading day on Tuesday in reaction to the widening of the country’s balance of payments (BOP) deficit and a drop in car sales in April.
“The local market plunged as investors dealt with the further widening in the Philippines’ balance of payments deficit in April,” Japhet Tantiangco, an analyst from Philstocks Financial Inc., said.
Investors were also trying to comprehend the 10 percent drop in new vehicle sales in the Philippines,” he said.
The country’s balance of payments settled with a deficit of $2.6 billion in April, wider by 30 percent than the $1.97 billion recorded in March, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.
On the other hand, increases in vehicle sales slowed to 2.5 percent in the first four months of the year, dragged by a 19.5-percent decline in passenger car sales during the period, a joint chamber report said also on Monday.
The market is interpreting these developments “as a sign of challenged consumption in the country,” Tantiangco said.
The benchmark PSEi tumbled 1.85 percent or 119.51 points to close at 6,335.33.
The broader All Shares fell 1.20 percent or 45.09 points to 3,720.57.
Trading value amounted to more than P7.3 billion.
Decliners outnumbered gainers 126 to 62, while 55 were unchanged.
Stock brokerage SB Equities Inc. said there was “a surge in market-on-close selling,” adding that the PSEi extended its losing streak to a fifth consecutive trading day.
Tantiangco said all sectors closed in the red, with services losing the most with a 2.21 percent fall.
The series of negative local news made investors wary, Luis Limlingan, the managing director from Regina Capital and Development Corp., said.
The only option they see now is to scale back on their holdings, Limlingan said.
Overseas, most equity markets in Asia were firmer as investors put Moody’s downgrade of US credit ratings in the rearview mirror after Treasury Secretary Scott Bessent dismissed the decision via television interviews.
Stocks in Singapore, Thailand and China posted moderate gains.
Most actively traded BDO Unibank Inc. declined by P2.70 to P155.10. International Container Terminal Services Inc. lost P16 to P400. Bank of the Philippine Islands shed P4.80 to P131.10. Emperador Inc. droopped P0.06 to P13.40. Converge ICT Solutions Inc. closed unchanged at P20. Ayala Land Inc. gained P0.10 to P23. SM Prime Holdings Inc. eased P0.60 to P23.50. Ayala Corp. shed P0.50 to P550. Jollibee Foods Corp. rose P2 to P242. Universal Robina Corp. fell P1 to P90. –(with additional report from Reuters)
