Manila Bulletin
Stocks fall as inflation still high
The Philippine Stock Exchange index (PSEi) declined for the fourth consecutive day, closing at 6,299.69 points, a 0.94 percent loss, reaching a new low for 2021.
The All Shares index also fell by 0.62 percent, with most sectoral indexes ending in negative territory except for Mining and Oil.
Analysts attributed the stock market's decline to concerns regarding the elevated April inflation rate of 4.5 percent, which remains above the Bangko Sentral ng Pilipinas' (BSP) target range of 2-4 percent for the year.
Investors were also affected by the release of April Consumer Price Index (CPI) data and earnings reports from PSEi constituents.
Low trading volume, hitting a year-to-date low of PHP3.8 billion, also contributed to traders staying on the sidelines.
The peso remained steady against the US dollar, closing at 48.025 with a trading range between 47.96 and 48.13.
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The Philippine Stock Exchange index (PSEi) declined as investors favored US assets, while the peso hit a two-month high against the US dollar, reaching the 47-level. The PSEi dropped 0.38 percent, or 24.07 points, to 6,258.71 points, with All Shares also falling slightly to 3,877.43 points. The Mining and Oil, Services, and Industrial sectors gained, while Property, Holding Firms, and Financials sectors declined during the trading day. The peso closed at 47.855, its strongest level since February 15, driven by improved employment data and a decrease in new Covid-19 cases. Economist Michael Ricafort highlighted that the peso's strength was also influenced by the decline in the unemployment rate to 7.1 percent and a compromise agreement on pork import tariffs. The ADP report showed that 742,000 new jobs were created in the US last April, higher than the 517,000 in March but lower than the expectations of 830,000. The peso improved further against the greenback after ending the day at 47.855 from 47.98 a day ago.
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Inflation in the Philippines remained stable at 4.5% in April, matching the March rate and exceeding the Bangko Sentral ng Pilipinas' target range of 2% to 4%.
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Philippine shares experienced a slight increase on Tuesday, driven by bargain hunting after the market declined due to worse-than-expected economic contraction data.
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The Bangko Sentral ng Pilipinas (BSP) projects April inflation to be between 4.2 percent and 5 percent, exceeding the central bank's target.
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