PSEi falls amid inflation, rate hike fears
Philippine stocks were down on Tuesday as rising inflation and expectations of another interest rate hike fueled concerns over the country’s economic growth outlook.
The benchmark Philippine Stock Exchange Index (PSEi) dropped 0.73 percent, or 41.64 points, to close at 5,701.54.
Philstocks Financial Inc. attributed the decline to worries about economic growth as investors increasingly expect the Bangko Sentral ng Pilipinas (BSP) to raise rates again at its Oct. 22 meeting.
Elevated bond yields added pressure on the stock market, the brokerage said.
Trading remained subdued, with net value turnover reaching P3.98 billion.
Philstocks said downside risks continued to keep many investors on the sidelines.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local index ended lower as investors opted to take profits following two consecutive sessions of gains.
“The profit-taking reflects continued caution among market participants amid lingering uncertainties,” Limlingan said.
“Investors remain watchful of external developments and domestic economic conditions, which could influence near-term market direction,” he added.
Foreign investors also weighed on the market, ending the session as net sellers with outflows of P468.75 million.
All sectoral indices finished in negative territory. Services and holding firms posted the steepest declines, each losing 0.85 percent.
Despite the broad retreat, PLDT Inc. led the index gainers, climbing 3.91 percent to P1,195 per share.
ACEN Corp. was the day’s worst-performing index stock, falling 4.48 percent to P2.56 per share.
