PHL stocks extend slide on FDI data, Trump woes

LOCAL SHARES dropped further on Monday as the market continued to react to Republican Donald J. Trump’s win in the US presidential election and following the release of data showing that net inflows of foreign direct investments (FDI) into the Philippines declined in August.

The main Philippine Stock Exchange index (PSEi) went down by 0.53% or 37.17 points to close at 6,940.01 on Monday, while the broader all shares index dropped by 0.43% or 16.78 points to 3,867.02.

“Local shares opened the week in the red as investors digested the latest FDI data from the Bangko Sentral ng Pilipinas (BSP),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message, adding that lower FDIs showed “potential caution among foreign investors.”

FDI net inflows fell by 14.5% year on year to $813 million in August, BSP data released on Monday showed.

Still, net inflows for the first eight months of 2024 went up by 3.9% to $6.1 billion from $5.8 billion a year prior.

The BSP expects FDI net inflows to reach $10 billion at end-2024.

The local bourse extended its slide amid Mr. Trump’s impending return to the White House, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. 

“Investors continue to price in the negative implications of US protectionist policies upon a Trump presidency. This includes a possible slowdown of policy easing by the US Federal Reserve and consequently the BSP due to the inflation risks posed by Mr. Trump’s planned tariffs,” he said.

“The peso’s weakness also continued to weigh on the bourse,” Mr. Tantiangco added.

On Monday, the peso went down to P58.595 versus the dollar from Friday’s close of P58.26.

Almost all sectoral indices closed lower. Mining and oil decreased by 2.6% or 218.05 points to 8,149.14; industrials went down by 0.89% or 87.02 points to 9,631.48; holding firms retreated by 0.73% or 43.87 points to 5,901.89; services went down by 0.61% or 13.20 points to 2,136.74; and property sank by 0.52% or 13.96 points to 2,651.70.

Meanwhile, financials climbed by 0.3% or 6.95 points to end at 2,271.54.

“Ayala Land, Inc. was the day’s index leader, climbing 1.94% to P31.60. Aboitiz Equity Ventures, Inc. was the main index laggard, plunging 5% to P34.20,” Mr. Tantiangco said.

Value turnover retreated to P3.84 billion on Monday with 548.52 million shares changing hands from P6.35 billion with 682.45 million issues traded on Friday.

Decliners outnumbered advancers, 118 versus 70, while 55 names were unchanged.

Net foreign selling declined to P740.09 million on Monday from P1.9 billion on Friday.

“Net foreign selling in the market has already been running on a 10-day streak,” Mr. Tantiangco said. — R.M.D. Ochave