Philippine Shares Slide to 5,800 Level Amid FTSE Rebalancing and Fuel Price Hikes

Philippine shares closed in the red on Friday, with the local stock barometer sliding to the 5,800 level as investors sold positions following a rebalancing of the Financial Times Stock Exchange (FTSE) and continued sour sentiment amid the ongoing Middle East fuel crisis. The main Philippine Stock Exchange index (PSEi) shed 102.73 points or 1.72% to 5,885.91 at the closing bell, from 5,958.64 on Thursday. The broader All Shares index also declined by 40.31 points or 1.22% to 3,277.80. "The local index closed in the 5,800 level as strong selling pressure emerged following the FTSE Philippines rebalancing," Regina Capital Development Corp. head of sales Luis Limlingan said. FTSE indices provide the basis for worldwide investment analysis, performance measurement, asset allocation and hedging. Fund managers reallocate funds depending on the change in the weight for each index stock. "Market sentiment remained cautious amid expectations of a significant increase in domestic gas prices next week. Investors continued to monitor the potential impact of higher energy costs on operating expenses and broader market sentiment," Limlingan said. Next week, pump prices are expected to go up big-time once again with diesel seen rising by P10.00 to P10.50 per liter and gasoline by P4.50 to P5.00 per liter. An oil industry source said oil prices surged after attacks in the Strait of Hormuz and the Red Sea, triggering concerns of severe effect on global energy supplies. More than 1.619 billion shares valued at P16.229 billion, changed hands. Decliners led advancers, 117 to 79, and 43 issues were unchanged. — VDV, GMA News