Inflation fears dampen market sentiment; index down 1.68%

The local stock barometer started the week on a sluggish note as markets fretted over prospects of rising inflation here and abroad.

The Philippine Stock Exchange index (PSEi) shed 116.07 points, or 1.68 percent, to close at 6,810.34 on Monday amid ongoing debates on whether lockdown restrictions should be further relaxed.

“Local shares closed lower as increasing bond yields led to the reversal of market gains, while other investors are closely monitoring whether the country will transition to MGCQ (modified general community quarantine) in March,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

Papa Securities said the PSEi would likely consolidate between the current range of 6,600 and 7,100.

On Monday, the holding firm counter posted the steepest decline at 2.65 percent, while the services counter also lost 1.47 percent.

The financial, industrial and property counters all declined by less than 1 percent.

Only the mining/oil counter bucked the downturn, having risen by 4.34 percent.

Value turnover for the day amounted to P8.5 billion.—DORIS DUMLAO-ABADILLA INQ