Inflation worries weigh down local stocks
The benchmark Philippine Stock Exchange index (PSEi) continued to drift lower on Thursday during another low-volume session as investors weighed the impact of continued high inflation on corporate earnings.
The PSEi shed 0.38 percent, or 25.38 points, to 6,686.83 while the broader all-shares index slipped 0.22 percent, or 7.99 points, to 3,581.79.
First Metro Investment Corp. and the University of Asia and the Pacific (FMIC-UA&P) said in the latest issue of The Market Call that higher consumer prices would continue through the third quarter of 2022.
“Given the uncertainty on how long the Russia-Ukraine war will last and its impact on crude oil and commodity prices, it now looks like average inflation for the second quarter and the third quarter will exceed 5 percent,” it said in its latest report.
This was above the Bangko Sentral ng Pilipinas’ full-year average inflation forecast of 4.6 percent.
FMIC-UA&P said the incoming administration could provide a boost to the stock market by continuing “reform-minded policies” such as picking up infrastructure programs started under the Duterte and Aquino administrations.
Meanwhile, PSE subsectors were mixed on Thursday with financials and industrial closing lower while mining and oil, property, services and holding firms gained.
A total of 852.38 million shares valued at P5.1 billion changed hands while foreign sellers prevailed with net sales of P318.61 million, PSE data showed.
Decliners also outnumbered advancers 100 to 73 while 53 companies closed unchanged.
Ayala Corp., the most actively traded company on Thursday, ended flat at P700 per share.
It was followed by Globe Telecom, down 2.25 percent to P2,350; Converge ICT Solutions Inc., down 1.73 percent to P25.60; SM Prime Holdings Inc., up 0.27 percent to P37.15; and BDO Unibank Inc., down 2.88 percent to P128.10 per share.
Other active names were Semirara Mining and Power Corp., up 1.99 percent to P35.95; Ayala Land Inc., unchanged at P29.55; Bank of the Philippine Islands, down 1.77 percent to P94.10; DMCI Holdings Inc., up 2.11 percent to P9.18; and Monde Nissin Corp., down 2.51 percent to P13.98 per share.
