Jittery investors push stocks close to 5,600

MANILA, Philippines — Investors retreated yesterday amid economic risks and mounting price pressures, pushing the stock market closer to the 5,600 level in a week fraught with uncertainties.

The benchmark Philippine Stock Exchange index (PSEi) tumbled by 1.53 percent, or 87.45 points, to close at 5,641.18, as investors went on a selling spree to cut losses.

The broader All Shares index likewise dipped by 1.01 percent, or 32.17 points, to settle at 3,161.12.

Regina Capital Development Corp. head of sales Luis Limlingan said investors were selling shares   amid inflation concerns, particularly the prospect of persistently high oil prices in the absence of a peace deal in the Middle East.

Investors were also factoring in the government’s 14 consecutive months of declining infrastructure spending, which raises concerns about the strength of the Philippine economy’s recovery, Limlingan said.

“Persistent cost pressures and weak infrastructure activity continued to cloud the market outlook, keeping investors cautious toward local equities,” Limlingan said.

All sectors of the PSEi ended in negative territory, as total market turnover reached P5.91 billion. Decliners outnumbered advancers, 106 to 61, while 78 issues were unchanged.

Investors will also look for further clues on the direction of monetary policy as the US Federal Reserve begins its two-day meeting today to decide whether to keep interest rates steady or raise them.