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PSEi dives as inflation concerns welcome Bongbong Marcos

05:22 AM July 01, 2022

The benchmark Philippine Stock Exchange Index (PSEi) surrendered most of the gains over the past four sessions on Thursday after Finance Secretary Benjamin Diokno warned inflation could reach up to 6.5 percent in June.

The PSEi fell 2.34 percent, or 147.76 points, to 6,155.43 while the broader All Shares index sank 1.56 percent, or 52.89 points, to 3,336.23.

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Price increases

Diokno, who vacated his post as Bangko Sentral ng Pilipinas governor Thursday to take over a new role as finance secretary, said in a series of tweets yesterday that June inflation was expected to settle between 5.7 percent and 6.5 percent.

The stock market plunge also came as the son and namesake of the ousted dictator Ferdinand Marcos was inaugurated as the country’s 17th president. Marcos Jr. has yet to detail concrete plans to cushion price hikes amid huge government debts and worries over a global recession.

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Diokno’s pronouncements suggested accelerating price increases for basic consumer goods compared to the May 2022 inflation reading of 5.4 percent.

“The continued increase in domestic oil prices, upward adjustment in electricity rates, higher prices of key food items, and peso depreciation are the primary sources of inflationary pressures during the month,” Diokno said.

“These could be offset in part by lower prices of LPG (liquefied petroleum gas) and fish,” he added.

Holding firms and services were the top losers on Thursday, each shedding 3.42 percent and 3.87 percent. Financials and property also closed in the red while industrial and mining and oil stocks advanced.

Top traded

Trading volume saw a modest increase from the previous session with 882.15 million shares valued at P6.44 billion changing hands while foreigners remained net sellers to the tune of P843.45 million.

Universal Robina Corp. was the top traded company as it rose 2.78 percent to P111 per share.

It was followed by BDO Unibank Inc., down 3.32 percent to P110.50; Ayala Land Inc., down 4.85 percent to P25.50; International Container Terminal Services Inc., down 6.07 percent to P184; and SM Investments Corp., down 4.63 percent to P782 per share.

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Other active stocks were SM Prime Holdings Inc., down 1.25 percent to P36.55; PLDT Inc., down 4.82 percent to P1,680; Converge ICT Solutions Inc., down 2.98 percent to P21.15; Monde Nissin Corp., down 1.37 percent to P13; and Bank of the Philippines Islands, down 1.85 percent to P84.80 per share.

Overall, there were 117 losers against 71 gainers while 47 companies closed unchanged, Philippine Stock Exchange data showed.

—MIGUEL R. CAMUS

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TAGS: Philippine Stock Exchange index (PSEi), Stock Market
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