PSEi down as crude shock fans inflation concerns
Philippine shares fell lower on Monday after the Russia-Ukraine conflict caused oil prices to surge, raising worries this would push inflation above the government’s targets.
The benchmark Philippine Stock Exchange index (PSEi) fell 0.73 percent, or 53.94 points, to 7,288.07 while the broader all-shares index dropped 0.73 percent, or 28.54 points, to 3,866.98.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno said that “worst case scenario” oil prices of $120 to $140 per barrel would push up inflation above their forecast range of 2-4 percent in 2022.
“US crude oil jumped to $125 [per barrel], a whopping 13-year high, as the market continued to react to supply disruptions stemming from Russia’s ongoing invasion of Ukraine and the possibility of a ban on Russian oil and natural gas,” Luis Gerardo Limlingan, managing director at Regina Capital Development, said in a note to investors.
The mining and oil subsector was the sole gainer as it surged 6.54 percent. Industrial stocks sank 2.44 percent, followed by financials, down 1.08 percent, holding firms, down 0.72 percent, services, down 0.18 percent, and property, down 0.14 percent.
A total of 2.35 billion shares valued at P8.73 billion changed hands while foreigners sold their holdings by a net figure of P259.27 million.
Losers outpaced advancers, 147 to 66, while 34 companies closed unchanged.
BDO Unibank Inc. was the most actively traded on Monday as it closed flat at P130 per share.
It was followed by Semirara Mining and Power Corp., up 6.90 percent to P34.10; Metropolitan Bank & Trust Co., down 4.90 percent to P55.30; SM Prime Holdings Inc., up 0.77 percent to P39.50; and International Container Terminal Services Inc., up 1.24 percent to P229 per share.
