Philippine shares opened the week in the red as investor confidence continued to weaken amid a drop in foreign direct investments (FDI) and concerns over the economic impact of the typhoons that struck many parts of the country.
The main-share Philippine Stock Exchange Index hit a five-year low of 5,702.64 before closing at 5,738.18, down 21.19 points, or 0.37 percent. The broader all-shares index ended at 3,509.04, lower by 5.53 points, or 0.16 percent.
The peso strengthened to 58.96 to the U.S. dollar on Monday from 59.04 on Friday.
FDI declined 40.5 percent year-on-year in August, primarily due to reduced net investments in debt instruments, which dropped to $529 million versus $675 million last year.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the market declined on worries that the series of storms could further slow growth of the domestic economy.
Other factors that affected investor sentiment include the higher electricity rates in November and the latest round of fuel price hikes.
Sectors ended mixed with mining and oil and industrial closing in positive territory, rising by 4.28 percent and 0.04 percent, respectively.
On the other hand, the services sector declined the most, down 1.02 percent. Financials, property, and holding firms were also lower by 0.47 percent, 0.25 percent, and 0.04 percent, respectively.
Value turnover reached P6.96 billion. Market breadth was negative as decliners outnumbered gainers 100 to 85, while 56 stocks closed unchanged.
Foreign investors were net buyers with inflows at P112 million.
