PSEi down on hawkish monetary policy shift

MANILA, Philippines – Local stocks opened the week on a weak note as concerns over rising inflation and interest rates dampened investor appetite.

The benchmark Philippine Stock Exchange Index (PSEi) fell 0.71 percent or 42.34 points, to close at 5,901.15.

READ: cautious-equities-trading-seen-to-continue-this-week

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the PSEi started the week in the red as market sentiment remained cautious amid continued peso depreciation and renewed increases in crude oil prices.

“These developments fueled concerns over rising inflationary pressures, prompting fears of possible additional rate hikes by the central bank. As a result, investors stayed on the sidelines, weighing macroeconomic risks against near-term growth prospects,” Limlingan said.

Philstocks Financial research manager Japhet Tantiangco said sentiment was further dragged by fading prospects of a deal between the United States and Iran.

Trading activity remained subdued, with net value turnover dropping to P4.65 billion from last Friday’s P5.23 billion.

Outflows

Foreign investors continued to exit, posting net outflows of P677.34 million.

Sectoral performance was mixed, with miners leading the gains, rising 1.96 percent. Conglomerates recorded the steepest decline, losing 1.74 percent.

Market breadth was negative as decliners outpaced advancers, 107 to 86.

Among index members, Manila Electric Co. led the gainers, climbing 2.18 percent to P655.

DigiPlus Interactive Corp. was the top laggard, dropping 4.58 percent to P14.18.

Ron Acoba, chief investment strategist at Trading Edge, said this weakness may persist over the next one to two quarters, given the recent interest rate hike.” INQ