Stocks sink on heavy selling

The Philippine Stock Exchange experienced a significant decline on Friday, with investors reacting to the rebalancing of the Financial Times Stock Exchange (FTSE). The bellwether Philippine Stock Exchange index (PSEi) dropped by 1.72 percent or 102.73 points, closing at 5,855.91. The broader All Shares index took an equivalent hit, falling by 1.21 percent or 40.31 points, settling at 3,277.80.

Heavy selling pressure was driven by the FTSE rebalancing, according to Franco Fernandez, an equity research analyst at DragonFi Securities Inc. He noted that institutions were adjusting their portfolios due to subdued risk appetite caused by unresolved macroeconomic and geopolitical concerns.

The PSEi broke the 5,900 mark and closed near the lower end, lagging behind Asian markets. Turnover surged, reaching P15.1 billion, with a majority of the trading occurring at market-on-close. This surge was attributed to the FTSE rebalancing, which saw MOC (market-on-close) accounting for about 66 percent of the trading volume.

The PSEi's decline was primarily attributed to concerns that the Bangko Sentral ng Pilipinas (central bank) might match the recent 25-basis-point interest rate hike by the US Federal Reserve. All sectors were affected, with mining and oil being the only ones to show a slight increase of 1.65 percent.

Services and holding firms were the worst hit, with their shares declining by 2.53 percent and 2.45 percent, respectively. Market breadth remained negative, with decliners outnumbering advancers by a ratio of 117 to 79. No issue showcased positive movement during the session. The top traded stock for the day was ICTSI, which fell by 3.21 percent, closing at P905 per share. Emperador and SM Investments also saw a drop, falling by 0.51 percent and 5.98 percent, respectively, to P15.72 and P503.