Inflation pulls down PSEi below 6,800

MANILA, Philippines — Sizzling March inflation rocked investors on Friday as the benchmark index fell below 6,800 after nearly two months.

The Philippine Stock Exchange Index (PSEi) also remained in the red for the fourth straight session as it slipped by 1.20 percent, or 81.60 points, to 6,745.46 by the closing bell. The broader All Shares Index also dipped by 0.70 percent, or 25.14 points, to 3,555.18.

The PSEi last closed below the 6,800 level on Feb. 19.

READ: Asian shares mostly decline after Wall Street drop on rate cut concerns

A total of 2.30 billion shares valued at P14.27 billion changed hands, stock exchange data showed.

March inflation rate accelerated to 3.7 percent from 3.4 percent in February as the prices of vegetables, meat and rice rose, according to the Philippine Statistics Authority. Despite the uptick, inflation settled within the government’s 2 percent to 4 percent target range.

“Although within expectations, the sentiment [was] weighed down by the possibility that the inflation rate may worsen given the rising oil prices and depreciating peso, aside from the anticipated increasing food prices caused by El Niño,” said Claire Alviar, research analyst at Philstocks Financial Inc.

READ: March inflation higher at 3.7% but still within gov’t target range

Nearly all subsectors declined as Ayala-led and Sy-led firms went down. Property firms lost the most, declining by 3.30 percent, as Ayala Land Inc. and SM Prime Holdings Inc. slipped.

Sy family-led SM Investments Corp. was the top-traded stock as it went down by 0.51 percent to P975 per share.

Losers edged out advancers, 118 to 68, while 47 companies closed unchanged. —MEG J. ADONIS