PSEi defends 6,300 barrier amid heightened inflation worries
The Philippine Stock Exchange index (PSEi) squeaked out a gain from a tight range on Monday as investors remained wary of developments in the US economy and the upcoming local monetary policy decision.
The benchmark PSEi inched up 0.04 percent, or 2.38 points, to close at 6,333.94 while the wider all-shares index dipped 0.21 percent, or 7.17 points, to settle at 3,387.78.
“The market moved sideways for the day as bargain hunting efforts were met by selling pressure caused by worries over recession risks in the US’ economy and continuous buildup of inflationary risks here in the Philippines,” Philstocks Financial, Inc. senior research analyst Japhet Louis Tantiangco said. The PSEi paused near 6,300, a support level that the market has been trying to defend in recent days.
Tantiangco added, “investors also traded cautiously while waiting for the Bangko Sentral ng Pilipinas’ policy decision this week.” Analysts are expecting an interest rate hike of up to 50 basis points in response to rising inflation.
All subsectors were down except for industrial and holding firms, which grew by 0.05 percent and 0.92 percent, respectively. Property index had the steepest fall at 1.16 percent.
Value turnover weakened to P3.57 billion from P11.71 billion last Friday. Decliners led advancers, 108-81, while 52 issues were unchanged.
Globe Telecom’s shares, the most actively traded, plunged by 5.77 percent to P2,092 each.
This was followed by Converge ICT Solutions, down 4.22 percent to P19.30; International Container Terminal Services Inc., up 2.31 percent to P199.40; Ayala Land Inc., flat at P27.80; SM Investments Corp., up 0.64 percent to P790; and SM Prime Holdings, down 2.25 percent to P36.90.
Other active names were Bank of the Philippine Islands, down 1.37 percent to P93.50; Ayala Corp., up 0.31 percent to P642; Jollibee Foods Corp., up 2.08 percent to P196; and BDO Unibank Inc., up 1.49 percent to P122.80.
