PSEi slips as inflation woes obscure economic comeback
The benchmark Philippine Stock Exchange Index (PSEi) ended lower on Thursday as persistent inflationary concerns continued to cloud the country’s economic prospects during a pandemic.
By the closing bell, the PSEi was down 0.26 percent, or 18.01 points, to 6,924.99 while the broader all-shares index rose 0.06 percent, or 2.5 points, to 4,274.66.
In a report, the research team of the Bank of the Philippine Islands (BPI) said full-year inflation could hit 4.3 percent, eclipsing the government’s target of 2 to 4 percent.
The team said this could prompt the Bangko Sentral ng Pilipinas to hike interest rates in the coming months.
Upside risks
“We continue to see upside risks that could keep inflation above 4 percent in the coming months. Despite the reduction in pork tariffs, the price of pork has not shown a substantial decline,” the BPI report added.
BDO Unibank Inc. chief strategist Jonathan Ravelas said on Thursday the PSEi has yet to breach its recent high of 7,064 and would likely remain trading within a narrow range of 6,700-7,100 in the near-term.
Article continues after this advertisementThe pullback on Thursday came as foreigners were net sellers to the tune of P838.9 million.
Article continues after this advertisementMining and oil and services gained 0.67 percent and 0.53 percent, respectively, while industrial and property stocks sank about 0.5 percent each.
A total of 1.35 billion shares valued at P5 billion changed hands during the session. Decliners outnumbered advancers, 119 to 82, while 50 companies closed unchanged.
Ayala Land Inc. was the most actively traded company as it lost 0.69 percent to P16.10 per share.
It was followed by AC Energy Corp., down 0.69 percent to P8.61; Monde Nission Corp., up 3.09 percent to P16.70; SM Investments Corp., down 0.2 percent to P1,010 and GT Capital Holdings Inc., down 1.24 percent to P599.50 per share.
Other actively traded companies were Security Bank Corp., down 0.17 percent to P119; BDO Unibank, down 0.26 percent to P114.20; Bloomberry Resorts Corp., up 6.47 percent to P6.91; PLDT Inc., up 0.23 percent to P1,307 and Globe Telecom Inc., up 1.97 percent to P1,970 per share.
