PSEi falls below 5,900 on US inflation jitters

The benchmark Philippine Stock Exchange Index (PSEi) retreated below 5,900 on Monday as investors stayed on the sidelines ahead of the release of US inflation data, causing a sharp fall in trading activity.

By the closing bell, the PSEi tumbled 1.68 percent, or 99.61 points, to 5,832.58 while the broader All Shares Index lost 1.61 percent, or 51.49 points, to 3,149.10.

Trading was marked by low volumes as as 325.66 million shares valued at P2.53 billion changed hands.

Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said this was due to participants taking a wait-and-see stance ahead of the US inflation report on Wednesday and separate holidays in the US and Japan.

The foreigners that did participate ended as net sellers to the tune of P240.32 million, PSE data showed.

Investors were also reacting to comments by Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla ruling out another unscheduled interest hike for the remainder of 2022. Last July, the BSP delivered a 75 basis point off-cycle rate hike to help contain soaring consumer prices.

Active list

All PSE subsectors pulled back on Monday, led by holding firms (-2 percent), mining/oil (-1.89 percent) and industrial (-1.79 percent).

Bank of the Philippine Islands was the top traded company as it slipped 0.05 percent to P92.05 per share.

It was followed by Ayala Land Inc., down 1.71 percent to P23; Ayala Corp., down 3.17 percent to P610; BDO Unibank Inc., down 1.16 percent to P111.10; and Semirara Mining and Power Corp., down 0.37 percent to P40.25 per share.

SM Prime Holdings Inc slipped 0.95 percent to P31.15; Emperador Inc., unchanged at P19.72; Converge ICT Solutions Inc., down 6.15 percent to P12.20; International Container Terminal Services Inc., down 0.06 percent to P177.50; and GT Capital Holdings Inc., down 2.5 percent to P390 per share.

Overall, there were 158 losers against 36 advancers while 37 companies closed unchanged.

—Miguel R. Camus INQ