PSEi tumbles ahead of US inflation report

MANILA, Philippines — Investors chose to err on the side of caution while waiting for the release of US inflation data, resulting in a negative finish for the local stock market yesterday.

The benchmark Philippine Stock Exchange index shed 1.22 percent or 82.11 points to close the session at 6,642.71.

Also finishing lower was the broader All Shares index, losing 0.72 percent or 27.25 points to settle at 3,758.55.

Luis Limlingan of Regina Capital said that Philippine shares slid a volatile session as concerns over inflation and prolonged high interest rates kept sentiment cautious.

“Local shares fell back below the 6,700 level once more as traders evaluated the yearend rally and awaited Wednesday’s CPI report. The data could influence the Fed’s Dec. 17 to 18 policy decisions,” he said.

Net value turnover thinned slightly to P4.6 billion from the previous day’s P5.3 billion.

The financials index was the only sector that finished the session in the green, increasing by 0.21 percent.

The services index, meanwhile, took the deepest plunge at 2.37 percent, followed by property and holding firms which dropped by 1.45 percent and 1.42 percent, respectively.

Market breadth remained negative as decliners crushed advancers, 112 to 80, while 55 issues were unchanged.

Banking giants BDO and BPI were the top traded companies, climbing by 0.66 percent and 0.08 percent, respectively.