Stocks drop as September inflation heats up

MANILA, Philippines — The local stock market plunged yesterday after sentiment was weighed down by the country’s September inflation, which soared to a three-year high.

The bellwether Philippine Stock Exchange index (PSEi) dropped by 1.15 percent or 66.09 points, closing at 5,677.12.

The broader All Shares index also shed 0.86 percent or 27.53 points to end at 3,170.73.

RCBC chief economist Michael Ricafort said the PSEi corrected lower after the faster-than-expected headline inflation at 7.2 percent in September, the fastest in 3.5 years or since March 2023.

Ricafort said this could lead to more rate hikes from the Bangko Sentral ng Pilipinas to better manage inflation and inflation expectations, as well as to higher borrowing costs for some listed companies.

“The local market fell back below the 5,700 level as investors locked in quick gains, giving back some of the previous day’s advance after strong buying pressure at the close,” COL Financial Group research analyst Denise Joaquin said.

“Investors also digested a hotter-than-expected September inflation print, which jumped to 7.2 percent from 6.1 percent in August and exceeded economists’ 6.8 percent median forecast. Meanwhile, some investors remained on the sidelines as Mynt’s retail offer continued,” Joaquin said.

All sectors were in the red, with the mining and oil index taking the biggest hit with a 2.38-percent drop.

Total value turnover improved to P5.46 billion from the previous day’s P3.74 billion.

Market breadth remained negative as decliners outnumbered advancers, 120 to 73, while 69 issues did not change hands.

ICTSI was the session’s top traded stock, slipping by 1.66 percent to P890 per share, followed by BDO Unibank, which was unchanged at P110.50 and Ayala Corp., which advanced by 0.95 percent to P530.