PSEi snaps winning streak on faster inflation

Faster inflation recorded in December caused the local bourse to slide for the first time this year, along with investors locking in gains.

By the closing bell on Tuesday, the benchmark Philippine Stock Exchange Index (PSEi) slipped by 1.2 percent to 6,545.38, snapping its three-session winning streak.

Likewise, the broader All Shares Index lost 1.14 percent, or 43.34 points, to close at 3,750.69.

READ: Inflation speeds up to 2.9% in December 2024 — PSA

A total of 1.51 billion shares worth P4.51 billion changed hands as foreigners opted to shed their shares, stock exchange data showed. Foreign outflows totaled P894.32 million.

This comes after the Philippine Statistics Authority reported that inflation sizzled to 2.9 percent in December, faster than the 2.5 percent recorded the previous month.

Still, this brought the average inflation for 2024 to 3.2 percent, marking the first time since 2020 that the full-year price growth settled within the central bank’s 2 to 4 percent target range.

According to the PSA, the gain was due mainly to more expensive housing and utilities.

At the bourse, only mining and oil firms booked gains, while services and property companies lost the most.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., noted that aside from inflation, profit-taking also pulled the PSEi below 6,600.

Ayala Land Inc. was the top-traded stock as it slipped by 3.33 percent to P26.10 per share, followed by International Container Terminal Services Inc., down 2.58 percent to P400; BDO Unibank Inc., down 1.62 percent to P145.50; Dito CME Holdings, down 9.42 percent to P2.02; and Bank of the Philippine Islands, down 0.81 percent to P123 each.

Other actively traded stocks were SM Investments Corp., down 0.67 percent to P893, and SM Prime Holdings Inc., down 1.79 percent to P24.70 per share.

DigiPlus Interactive Corp. (up 1.97 percent to P28.50), AREIT Inc. (up 1.29 percent to P39.30) and Jollibee Foods Corp. (up 1.15 percent to P264) were some of the rare gainers.

Losers outnumbered advancers, 124 to 96, while 39 companies closed unchanged, stock exchange data also showed.