PSEI keeps slide as inflation fears linger

MANILA, Philippines — The local market stayed in the red on Tuesday after investors were discouraged by the less optimistic results of the Bangko Sentral ng Pilipinas’ (BSP) latest analyst survey on interest rates.

The benchmark Philippine Stock Exchange Index (PSEi) nearly touched the 6,400 level by the closing bell as it shed 1.07 percent, or 70.26 points, to 6,501.34.

The broader All Shares Index also slipped by 0.72 percent, or 25.34 points, to 3,484.74.

A total of 583.14 million shares valued at P5.27 billion changed hands, stock exchange data showed.

The majority of analysts surveyed by the BSP in its newest Monetary Policy Report projected policy rates to remain unchanged in the third quarter of the year.

READ: BSP tipped to keep interest rates steady

Traders likewise reeled from the BSP’s warning that upside risks to inflation remained, which may cause a more hawkish policy stance from the central bank, according to Mikhail Plopenio, researcher at Philstocks Financial Inc.

Property firms suffered the most from the news, declining by 1.84 percent, as index heavyweights Ayala Land Inc. (ALI) and SM Prime Holdings Inc. went down.

READ: Asian markets diverge, dollar weakens ahead of US inflation data

ALI was the top-traded stock as it slid by 4.75 percent to P27.10 each.

It was followed by International Container Terminal Services Inc., which went down by 3.26 percent to P338.60 per share; BDO Unibank Inc., up 0.15 percent to P135.20; Aboitiz Equity Ventures, down 4.51 percent to P36; and SM Prime, down 0.55 percent to P27.05. —Meg J. Adonis INQ