The local stock barometer slipped for the second straight session yesterday as investors priced in faster local interest rate hikes as domestic inflation hit a five-year high in June.
The main-share Philippine Stock Exchange index (PSEi) lost 46.86 points or 0.65 percent to close at 7,186.71, weighed down by more foreign portfolio outflows.
Regional markets were likewise mostly sluggish yesterday as investors fretted over an unfolding US-China trade war that is expected to create ripples across the globe.
“Suffice it to say that no one was happy about June’s inflation figure of 5.2 percent at all,” local stock brokerage Papa Securities said in a research note.
“With June’s 5.2 percent (inflation), it’ll be easier for transport groups to demand for the other P1 hike (in fares after the provisional increase of P1 that recently took effect) and bring up the (minimum fare) to P10. This potential 25 percent increase in PUJ (public utility jeepney) fees could then easily cascade down to the ongoing protests on minimum wage hikes, which depending on the magnitude of the result, might translate to higher prices of goods to come,” it added.
The PSEi was dragged down mainly by the holding firm and property counters, which both fell by over 1 percent.
The financial and mining/oil counters also both declined.
On the other hand, the industrial and services counters firmed up.
Value turnover for the day was thin at P4.86 billion. Net foreign selling amounted to P637.98 million.
There were 127 decliners that overshadowed 65 advancers while 45 stocks were unchanged.
The PSEi was weighed down by Metrobank, which fell by 2.79 percent. It was the day’s most actively traded company.
Ayala Land and AEV also both lost over 2 percent, while Ayala Corp., SM Investments and Security Bank all fell by over 1 percent.
ICTSI, SM Prime, GT Capital and JG Summit also slipped.
Outside the PSEi, notable decliners included IRC—proponent of a Makati subway system—which slid by 11.05 percent.
Megawide fell by 3.71 percent while Bloomberry shed 2.39 percent.
On the other hand, Meralco gained 2.29 percent while BPI added 1.39 percent.
Wellex Industries surged by 24 percent after clearing the legal roadblocks to a venture with property giant Ayala Land on the group’s big estate in Valenzuela.
Third telco aspirant Now added 6.74 percent.