PSEi, markets plunge as US inflation data stoke rate hike fears
Philippine stocks fell sharply on Friday as investors fled risky assets after inflation in the US surged to a 40-year high, heightening fears the Federal Reserve will respond with aggressive interest rate hikes that could trigger volatility in markets across the world.
By the closing bell, the benchmark Philippine Stock Exchange (PSE) Index fell 2.18 percent, or 162.26 points, to 7,270.36 while the broader all-shares index was down 1.34 percent, or 52.61 points, to 3,872.13.
“Philippines shares retreated on a red-hot inflation report that could trigger the Fed to hike interest rates as early as March,” Regina Capital Development managing director Luis Gerardo Limlingan said in a note to investors.
Wall Street indices dropped lower after US inflation accelerated to a 7.5-percent annual rate last month, above 7 percent in December.
PSE subsectors pulled back save for property, which added 0.21 percent. Services fell 3.53 percent, followed by holding firms, down 2.77 percent, financials, down 2.21 percent, industrial, down 1.83 percent and mining and oil, down 0.96 percent.
Volume surged higher on Friday with 1.9 billion shares valued at P22.83 billion changing hands.
The selloff on Friday was softened by overseas investors, who were net buyers to the tune of P4.47 billion.
There were a total of 121 losers against 66 gainers, while 50 companies closed unchanged, PSE data showed.
Monde Nissin Corp. was the most active company during the session, jumping 12.10 percent to P18.16 per share.
It was followed by Emperador Inc., down 6.25 percent to P22.50; Robinsons Retail Holdings Inc., up 3.91 percent to P57.20; Globe Telecom, down 4.54 percent to P2,690; and SM Prime Holdings Inc., up 3 percent to P37.80 per share.
Other heavy movers were Bloomberry Resorts Corp., down 3.31 percent to P5.84; International Container Terminal Services Inc., down 5.94 percent to P206; SM Investments Corp., down 3.09 percent to P911; Converge ICT Solutions Inc., up 2.48 percent to P28.95; and Bank of the Philippine Islands, down 2.67 percent to P98.30 per share.
