PSEi closes lower ahead of US inflation data

The Philippine Stock Exchange index (PSEi) closed lower on Wednesday, December 11, 2024, dropping 1.22% to 6,642.71, as investors awaited the release of US November inflation data.

This US Consumer Price Index (CPI) report, released overnight, could influence the US Federal Reserve's rate decision next week on December 17-18, where the Fed is widely expected to continue its easing cycle.

Local shares fell back below the 6,700 level once more as traders evaluated the yearend rally and awaited the CPI report, with concerns over inflation and prolonged high interest rates keeping sentiment cautious.

The broader all shares index went down by 0.72% to end at 3,758.55, and market breadth remained negative as decliners crushed advancers, 112 to 80.

The financials index was the only sector that finished the session in the green, increasing by 0.21%, while the services index took the deepest plunge at 2.37%.

Net value turnover thinned slightly to P4.6 billion from the previous day's P5.3 billion, and the peso also weakened, contributing to investor caution.