The benchmark PSEi fell as negative economic news hounded the market on Tuesday, particularly the substantial decline in foreign direct investment (FDI) inflows.
Trader Seth Pangan of Diversified Securities Inc. said the market was also due for a pull back after the PSEi broke past a major resistance level at 6,400 last month.
In Tuesday’s trade, the PSEi dropped 0.91 percent or 58.46 points to close at 6,347.67.
The broader All Shares lost 0.74 percent or 28.09 points to 3,758.50.
Market breadth clearly showed the market’s losing streak. Losers outnumbered gainers 128 to 65 with 49 stocks unchanged.
Trading value reached P9.38 billion on 82,452 trades involving more than 1.45 billion shares.
Foreign funds ended up with P525.73 million in net selling position after buying P4.82 billion worth of shares and selling P5.34 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said share prices fell against the backdrop of a fall in foreign investment inflows into the country.
FDI net inflows fell 41.1 percent to $1.76 billion in the first quarter of the year from $2.99 billion a year earlier, the Bangko Sentral ng Pilipinas reported earlier in the day.
In March alone, FDI net inflows reached $498 million, marking a decline of nearly 28 percent from March 2024’s $689 million.
The March FDI is below the monthly average of $765 million since the COVID-19 pandemic began in 2020, Ricafort said.
“Market is down due to the fact that the widely expected low May inflation of 1.3 percent and BSP rate cut of 25 basis points on June 19 are already priced in,” said Cristina Ulang, head of research at First Metro Investment Corp.
The market is now waiting for substantial progress, announcements, or positive news from round two of the US-China tariff talks in London, Ulang said, adding: “Market is more externally driven.”
Luis Limlingan, managing director at Regina Capital and Development Corp., said there was “anxiety” over the US-China dialogue.
US and China officials are set to resume their negotiation in London after the initial talk on Monday.
Investors are hoping the two superpowers can improve ties after the relief sparked by a preliminary trade deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defense. (With a report from Reuters.)
