Inflation fallout keeps Philippine shares sliding
MANILA, Philippines — The local bourse failed to reclaim the 6,700 level on Friday, with the benchmark index falling for the seventh session in a row as uncertain policy rates forced investors to sell their shares at the last minute.
By the closing bell, the Philippine Stock Exchange Index decreased by 0.27 percent, or 18.26 points, to 6,659.39. The broader All Shares Index likewise dropped by 0.24 percent, or 8.47 points, to 3,517.4.
A total of 523.94 million shares valued at P6.87 billion changed hands, stock exchange data showed. Foreigners further pulled the market down with an outflow of P567.78 million.
READ: March inflation higher at 3.7% but still within gov’t target range
“It has already been anticipated that the Bangko Sentral ng Pilipinas (BSP) and [US] Federal Reserve would cut interest rates this year. However, given the increasing risks to inflation, this could lead to a more cautious approach from both central banks,” said Claire Alviar, research analyst at Philstocks Financial Inc.
Earlier this week, the BSP kept its benchmark interest rate at 6.5 percent after inflation accelerated to 3.7 percent in March from 3.4 percent in February.
READ: BSP keeps policy rate unchanged at 6.5%
This dampened hopes that there would be rate cuts anytime soon, according to analysts.
The Zobel family’s Ayala Land Inc. was the top-traded stock on Friday as it went down by 1.24 percent to P27.85 per share.
It was followed by International Container Terminal Services Inc., up by 0.30 percent to P330 each; Metropolitan Bank and Trust Co., up 0.65 percent to P69.95; SM Investments Corp., up 0.93 percent to P980; and BDO Unibank Inc., down 0.79 percent to P150.10 per share.
