Inflation fears bring PSEi to sub-5,600

Philippine stocks fell for a fourth straight session on Thursday as investors braced for a possible acceleration in September inflation.

The benchmar Philippine Stock Exchange Index (PSEi) shed 0.88 percent, or 50.01 points, to close at 5,629.47.

Philstocks Financial Inc. said investors turned cautious ahead of the release of September inflation data.

The Bangko Sentral ng Pilipinas expects inflation to have settled between 6.4 percent and 7.4 percent last month.

This would be faster than the 6.1 percent recorded in August.

Elevated oil prices and yields, along with a weak local currency, also weighed on market sentiment.

Luis Limlingan, head of sales at Regina Capital Development Corp., said selling pressure remained intact amid crude oil prices nearing the $100-per-barrel level.

“Moreover, sentiment weakened after the S&P Global Philippines Manufacturing PMI fell to 49.6 in September from 54.9 in August,” Limlingan said.

“The reading marked the first contraction in five months, raising concerns over weakening manufacturing activity and domestic growth,” Limlingan added.

Trading remained tepid, with net value turnover reaching P6.17 billion.

Foreign investors extended the pressure after posting net outflows of P1.46 billion.

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All sectoral indices finished in negative territory. Services suffered the steepest decline, falling 2.03 percent.

ACEN Corp. surged 7.6 percent to P2.69, making it the session’s top index gainer.

AREIT Inc. was the biggest index laggard, dropping 3.51 percent to P35.70.

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