Rising inflation, weak peso paint PSEI red
MANILA, Philippines — Investors took profits as the weak Philippine peso and high inflation forced them to retreat on the sidelines, pushing the Philippine Stock Exchange index (PSEi) into the red territory.
The benchmark PSEi fell 1.30 percent, or 84.32 points, to settle at 6,386.42 while the broader All-Shares dipped by 0.92 percent, or 32.01 points, to sit at 3,439.04.
“This decline reflects negative investor sentiment due to concerns about rising inflation and a weakening peso,” said Claire Alviar, assistant manager for research and online engagement at Philstocks Financial Inc.
The Bangko Sentral ng Pilipinas estimates that inflation in May settled within the 3.7 percent to 4.5 percent range due to rising electricity rates and vegetable prices. Inflation was at 3.8 percent in April.
Meanwhile, the peso has been trading at P58 against the greenback, which is a nearly two-year low for the local currency.
All the sectors were in the red. Holding firms and mining and oil plunged the deepest, declining by 2.5 percent and 1.29 percent, respectively.
Over 500.66 million shares valued at P6.01 billion were traded. Losers outpaced winners, 128-80, while 32 issues were unchanged.
The most actively traded shares were SM Investments Corp., dropping by 4.1 percent to P818 each. —Tyrone Jasper C. Piad INQ
