Investors jittery on upcoming US inflation data

The benchmark Philippine Stock Exchange Index (PSEi) ended the week in bloodbath as investors sold off their positions ahead of the release of US inflation data.

The PSEi plunged by 3.38 percent, or 228.55 points, to close at 6,530.04 while the broader all-shares index fell by 2.46 percent, or 88.73 points, to sit at 3,511.93 by the closing bell.

The last time PSEi settled at the 6,500 level was on May 25. That day, the index was up 0.31 percent, or 20.31 points, to finish at 6,597.76.

PSEi has been trading mostly within the 6,700 territory prior to this closing.

“Investors took a cautious stance while waiting for the US’ May inflation data release,” Philstocks Financial Inc. senior research analyst Japhet Louis Tantiangco said.

Regina Capital Development Corp. managing director Luis Limlingan said “investors are looking to see if inflation has peaked or if the Fed (US Federal Reserve) will need to be even more aggressive to tamp down price increases.”

All subsectors were down, with the property index having the biggest decline at 4.2 percent. This was followed by holding firms and mining and oil, which lost 3.62 percent and 3.37 percent, respectively. With a P6.02-billion value turnover, a total of 45 companies booked gains while 131 dropped; 40 issues did not change hands.

International Container Terminal Services Inc.’s shares, which dipped by 0.49 percent to P202 each, were the most actively traded.

This was followed by SM Prime Holdings, down 4.15 percent to P37; Ayala Land Inc., down 5.36 percent to P30; SM Investment Corp., down 4.87 percent to P820; Semirara Mining and Power Corp., down 4.48 percent to P34.10; and BDO Unibank, down 2.93 percent to P126.

Other active names were Ayala Corp., down 2.38 percent to P655; PLDT Inc., down 4.38 percent to P1,836; Metropolitan Bank & Trust Co., down 1.83 percent to P50.85; and Universal Robina Corp., down 2.95 percent to P102.

—Tyrone Piad
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