MANILA – Concerns on the US’ rising inflation rate made investors risk-averse resulting in the negative close of the local main equities index Wednesday but the peso managed to end the day sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) lost 0.86 percent, or 58.72 points, to 6,755.95 points.
All other counters followed with the All Shares contracting by 1.003 percent, or 41.56 points, to 4,100.16 points.
Mining and Oil index registered the highest drop among the sectoral counters after it fell by 3.006 percent.
Industrial slipped by 1.59 percent, Holding Firms by 1.23 percent; Financials, 0.81 percent; Property, 0.36 percent; and Services, 0.07 percent.
Volume totaled to 36.10 billion shares amounting to PHP14.70 billion.
Losers led gainers at 174 to 58, while 37 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, said shares across Asia were affected by “concerns towards rising inflation” in the US that “needed to be tamed by Fed chair Jerome Powell’s speech.”
He was referring to Powell’s speech before the US Senate Banking Committee Wednesday wherein he described inflation as “soft” and cited the need to help the employment sector.
Limlingan said “China and Hong Kong stocks fell as many continued to sell consumer and healthcare stocks which many believed to have reached the peak of the valuations.”
“In addition, oil fell after it was reported that oil stockpiles were mounting even after freezing temperatures across the US,” he added.
Another factor on the negative close of the main equities gauge is that investors “are anticipating a selldown on Friday with MSCI’s rebalancing finally taking place.”
Meanwhile, the peso ended the day’s trade at 48.605 from 48.64 a day ago.
It opened the day at 48.6, an improvement from its 48.72 start in the previous session.
It traded between 48.75 and 48.57, resulting in an average of 48.637.
Volume totaled to USD1.19 billion, lower than the USD1.22 billion a day ago. (PNA)
