Local stocks decline while awaiting US inflation data

Philippine shares closed lower while volume accelerated as investors sold down risky equities ahead of the release of new inflation data in the United States late Tuesday.

The benchmark Philippine Stock Exchange index (PSEi) sank 1.33 percent, or 92.93 points, to 6,895.36 while the broader all-shares index shed 1.14 percent, or 42.37 points, to 3,685.84.

A key catalyst was the release of the US consumer price index for the month of March, which would likely reflect rising inflationary pressures following Russia’s invasion of Ukraine.

The latest inflation reading would also influence the pace of monetary tightening by the powerful US Federal Reserve.

BDO Unibank Inc. chief strategist Jonathan Ravelas said the lower close on Tuesday indicated further downside risks to the stock market.

“The PSEi closed below the 6,900 level at 6,895.36 down by 92.93 [points]. Looks like the decline could accelerate,” Ravelas said in a tweet on Tuesday.

All PSE subsectors were lower during the session, led by the industrial and property indices’ 2.15-percent and 1.83-percent drop.

Trading volume increased on Tuesday to 1.51 billion shares valued at P5 billion while foreigners cut their holdings by a net amount of P749.76 million.

A total of 113 companies closed down against 50 advancers while 60 firms closed unchanged.

Bank of the Philippine Islands was the most actively traded on Tuesday as it slipped 2 percent to P98 per share.

It was followed by Ayala Land Inc., down 0.87 percent to P34; International Container Terminal Services Inc., down 1.97 percent to P218.60; SM Prime Holdings Inc., down 2.70 percent to P36; and Manila Electric Co., down 2.47 percent to P363.20 per share.

BDO Unibank Inc. lost 0.85 percent to P129; SM Investments Corp., flat at P865; Ayala Corp., down 1.16 percent to P769; Converge ICT Solutions, down 0.68 percent to P29; and PLDT Inc., down 1.53 percent to P1,800 per share.

—Miguel R. Camus INQ