Stocks slip as selling pressure continues

Manila, Philippines — The Philippine stock market continued its downward trend, with the benchmark Philippine Stock Exchange index slipping by 0.21 percent or 12.12 points, opening the week at 5,843.79. The broader All Shares index also declined by 0.34 percent or 11.09 points, closing at 3,266.71. Luis Limlingan of Regina Capital explained that the local bourse fell as selling pressure persisted, despite the index hovering around the 5,800 level.

Market participants remained defensive as heightened geopolitical uncertainty and investor caution from the ongoing conflict between the United States and Iran added to the bearish sentiment. Limlingan noted that concerns over a potential rise in crude oil prices, which could impact inflation and economic growth, kept sentiment subdued.

Juanis Barredo, COL's chief technical analyst, suggested a possible turning point could be on the horizon, potentially in the September to October window or infrequently in October to November. Assuming such a turning point occurs, it might indicate a short-term low for the PSEi, as the index is currently on a downward trajectory and many stocks have reached or are near oversold conditions.

All sectors of the market ended the previous session in the red, with the exception of holding firms, which rose by 1.76 percent. The industrial index experienced the most significant drop, falling by 1.5 percent, followed by mining and oil, which declined by 1.42 percent. The total value turnover for the week was P6.87 billion, with 115 decliners outpacing 78 advancers, and 62 issues remaining unchanged.

ICTSI was the most actively traded stock, falling by 0.77 percent to P898 per share, while conglomerates Ayala Corp. and SM Investments saw gains of 5.13 percent and 1.99 percent, closing at P533 and P513, respectively.