PH shares dive after US inflation prompts Wall Street meltdown

The Philippine Stock Exchange Index (PSEi) plunged over 100 points on Wednesday after US inflation in August rose faster than expected, causing a selloff in Wall Street and most Asian indices.

The Philippine benchmark measure fell 1.77 percent, or 118.95 points, to 6,582.86 while the broader All Shares index was down 1.29 percent, or 45.62 points, to 3,497.21.

The latest consumer price index (CPI) print in the US raised the likelihood of another aggressive interest rate hike by the influential Federal Reserve. Central banks around the world, including the Bangko Sentral ng Pilipinas, take their cues from the US Fed.

“A hotter-than-expected (US) CPI report sent the Philippines along with all major regional indices on a selldown,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Wednesday.

“As for the US, the selling pressure was so strong that the three major [indices] went tumbling to their worst day since June 2020, spurring fears that the Fed could potentially hike even higher than 75 [basis points],” he added.

PSE data showed 821.23 million shares valued at P5.29 billion changed hands during the session while all subsectors, led by holding firms and financials, closed lower.

SM Prime Holdings Inc. was the top traded company as it shed 1.37 percent to P36.05 per share. It was followed by International Container Terminal Services Inc., down 0.8 percent to P185.70; San Miguel Corp., down 3.06 percent to P95; BDO Unibank Inc., down 3.7 percent to P125.10, and Ayala Land Inc., down 0.35 percent to P28.40 per share.