MANILA, Philippines — Investors yesterday pulled the market back closer to the 6,900 territory, pricing in the impact of inflation landing on the higher end of the target band.
The benchmark Philippine Stock Exchange index (PSEi) fell by 46.21 points, or 0.67 percent, to close at 6,905.46, while the broader All Shares index declined by 14.68 points, or 0.41 percent, to settle at 3,604.27.
Regina Capital Development Corp. head of sales Luis Limlingan said investors turned to selling mode as inflation ballooned to 3.4 percent in February, from 2.8 percent in January, snapping a four-month decline in the average rate of increase in the prices of goods and services.
Likewise, the February inflation print landed on the upper end of the Bangko Sentral ng Pilipinas (BSP) forecast of 2.8 to 3.6 percent. The BSP hopes to contain inflation within the target range of two to four percent this year.
Philstocks Financial Inc. research and client engagement officer Mikhail Plopenio said the PSEi also factored in uncertainties abroad. In the US, Wall Street succumbed to profit-taking ahead of Super Tuesday, where 15 states will vote in the presidential election primaries.
“Wall Street’s decline overnight spilled over to the bourse, as well as amid profit-taking, after the S&P 500 and Nasdaq reached record highs last week,” Plopenio said.
A total of P5.37 billion worth of shares changed hands throughout trading, and decliners outpaced gainers, 113 to 77, while 50 issues were unchanged.
By sector, financials endured the most loss of 1.56 percent, followed by industrial (1.48 percent), property (1.09 percent) and services (0.89 percent).