PSEi retreats on inflation worries
The stock barometer slipped on Thursday as investors weighed the impact of fast-rising consumer prices on the domestic economy.
The main-share Philippine Stock Exchange index (PSEi) gave up 25.37 points, or 0.37 percent, to close at 6,924.02.
“Philippine shares slid following overseas markets [including Wall Street] retreating for the third straight trading day after the market started downgrading US growth prospects,” Regina Capital Development managing director Luis Gerardo Limlingan said.
Locally, Limlingan cited economists’ forecasts that inflation would accelerate further, driven by the rising global commodity prices.
Other economists expect high inflation to temper household consumption in the near term.
Inflation rate hit 4.9 percent in August, the highest level seen in two years. This brought the country’s eight-month inflation rate average to 4.4 percent versus the 2-4 percent range targeted by the Bangko Sentral ng Pilipinas.
Article continues after this advertisementThe holding firm and services counters both shed less than 1 percent, while the financial, industrial, mining/oil and property counters all added less than 1 percent.
Value turnover was thin at P4.38 billion. There was net foreign selling worth P271.16 million. Decliners outnumbered advancers, 96 to 94.
