Inflation jitters drag PSEi below 5,700
Local stocks declined on Tuesday as investors reduced their exposure ahead of the October inflation report, while rising global oil prices added to market jitters.
The benchmark Philippine Stock Exchange Index (PSEi) shed 0.99 percent, or 56.18 points, to close at 5,624.17.
Brokerage Philstocks Financial Inc. said expectations that October inflation would exceed September’s 7.2 percent prompted investors to sell.
Investors also grappled with higher global oil prices, which the brokerage linked to an alleged US strike on Iran’s Qeshm Island.
Toby Allam Arce, head of sales trading at Globalinks Securities and Stocks Inc.’s, said concerns over domestic growth added to the cautious mood.
Arce cited the decline in the S&P Global Philippines Manufacturing Purchasing Managers’ Index to 49.1 in October from 49.6 in September, marking a second consecutive month of contraction.
He said the weaker reading heightened concerns about slowing economic activity as businesses faced tighter monetary conditions following the Bangko Sentral ng Pilipinas’ recent interest rate increases.
He added that losses across Asian markets further reduced investors’ appetite for risk.
“The market initially attempted to rally but failed to sustain its early gains,” Arce said, noting that late selling pushed the benchmark to its lowest level of the session.
Trading remained subdued, with net value turnover reaching P4.89 billion. Foreign investors ended the session as net sellers, recording net outflows of P258.78 million.
Conglomerates were the lone sector to advance, gaining 0.22 percent. All other sectors retreated, with services posting the steepest decline at 2.71 percent.
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