Faster inflation checks PSEI rebound
Despite early gains, Philippine shares ended flat on Tuesday, a day after it saw one of its worst falls of the year, as investors took in the possibility of elevated interest rates after inflation revved up in July.
The benchmark Philippine Stock Exchange Index (PSEi) shed 0.02 percent, or 1.49 points, to close at 6,433.24.
Meanwhile, the broader All Shares Index ended the trading session at 3,520.94, up 0.13 percent, or 4.47 points.A total of 419.01 million shares worth P5.12 billion changed hands, stock exchange data showed.
READ: July inflation accelerates to 4.4% – PSA
The market opened in the green as traders hunted for bargain stocks after the index fell by 2.58 percent on Monday, but last-minute profit-taking ultimately killed the early gains, according to Mikhail Plopenio, researcher at Philstocks Financial Inc.
Plopenio added that negative cues from the United States, where major indices plunged due to recession fears, continued to spill over at home.
Article continues after this advertisementHopes were likewise dampened by a comment from Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., who said an interest rate cut was now “little less likely” after inflation last month went up beyond the target range.
Article continues after this advertisementJuly inflation quickened to 4.4 percent year-on-year, breaching the government’s goal of 2 percent to 4 percent due to rising prices of housing, utilities, transport and food.
At the bourse, the sectors ended mixed, with property firms leading the gainers with a 0.60-percent rise, while the mining and oil sector saw the steepest drop at 1.76 percent.
Ports tycoon Enrique Razon Jr.-led International Container Terminal Services Inc. was the most actively traded stock as it closed unchanged at P348 per share.
It was followed by Universal Robina Corp., which dropped by 6.57 percent to P98.10; BDO Unibank Inc., up 0.72 percent to P140; Ayala Land Inc., up 1.42 percent to P28.55; and Metropolitan Bank and Trust Co., down 1.22 percent to P65 each.
Ayala Corp. was up 1.29 percent to P588.50; SM Investments Corp., down 0.45 percent to P880; SM Prime Holdings Inc., down 0.18 percent to P27.85; Bank of the Philippine Islands, down 0.68 percent to P117.40; and Wilcon Depot Inc., down 1.20 percent to P16.50.
Losers outnumbered gainers, 97 to 84, while 56 companies closed unchanged. —Meg J. Adonis INQ
