PSEi falls to 6,300 level as BoP deficit widens

PHILIPPINE STOCKS slid further on Tuesday, with the main index falling to the 6,300 level, following weak data on the country’s external position and amid heightened cautiousness after Moody’s cut the United States’ credit rating.

- Revin Mikhael D. Ochave

The bellwether Philippine Stock Exchange index (PSEi) fell by 1.85% or 119.51 points to close at 6,335.33, while the broader all shares index dropped by 1.19% or 45.09 points to 3,720.57.

This was the PSEi’s lowest close in three weeks or since its 6,252.19 finish on April 29. The index has now ended in the red for five consecutive sessions.

“The local market plunged as investors dealt with the further widening of the Philippines’ balance of payments (BoP) deficit last April, which hit $5.52 billion,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis 0. Tantiangco said in a Viber message. “Investors also digested the 10% drop in new vehicle sales in the Philippines, taking it as a sign of challenged consumption in the country.”