Stocks in the red ahead of inflation data

MANILA, Philippines — The Philippine stock market opened the week down ahead of the release of January inflation data this week.

The Philippine Stock Exchange index (PSEi) closed at 6,936.61, lower by 90.77 points or 1.29 percent.

The broader All Shares index likewise slipped by 30.78 points or 0.83 percent to 3,674.68.

All the other gauges were down with services and financials among the biggest decliners.

Total value turnover reached P9.95 billion. Losers outpaced gainers, 103 to 79 while 51 issues were unchanged.

“Philippine stocks were sold ahead of the January inflation print and investors kept cash with many awaiting the latest economic updates globally,” said Luis Limlingan of Regina Capital.

Inflation will be released today, Feb. 7, while the latest gross international reserves level and the local rate-setting meeting of the Bangko Sentral ng Pilipinas will be on Feb. 16.

Asian stock markets sank yesterday after strong US jobs data fanned fears of more interest rate hikes to cool inflation.

The US government reported the economy added 517,000 jobs in January. That was double December’s 260,000 and more than double the 185,000 expected by economists.

Average hourly wages were 4.4 percent higher in January than a year earlier. That was lower than December’s 4.8 percent raise but above expectations. Central bankers worry wage growth may push up consumer prices.

The data dampened investor hopes that lower inflation might persuade the Fed and other central banks to ease off plans for more rate increases. They worry central bankers might be willing to tip the global economy into recession to stop inflation that is near multi-decade highs.

Some traders expect the Fed to cut rates late this year, despite warnings by officials that more increases are planned. Officials of the European Central Bank have issued similar warnings.

The Thai baht fell the most in a day in 16 years and headlined broad weakness for Asian currencies as the dollar extended its rally.

The baht weakened 1.6 percent against the US currency to 33.48, on track for its worst session since December 2006.