PSEi slips on stagflation concerns

Philippine stocks were down Wednesday as investors turned cautious after President Marcos warned about stagflation risks amid lingering economic pressures.

The benchmark Philippine Stock Exchange Index (PSEi) slipped by 0.06 percent or 3.4 points, to close at 5,893.4.

Luis Limlingan, head of sales at Regina Capital Development Corp., said investors remained on the sidelines as concerns over elevated oil prices and slowing growth continued to cloud market sentiment.

Economists call the rare mix of rising prices and slowing economic activity “stagflation.”

Normally, inflation accelerates when consumer demand is strong and the economy is growing. In this scenario, however, prices continue to climb even as economic demand softens.

Limlingan added that worries over higher oil prices caused by global supply chain disruptions further weighed on sentiment, fueling concerns about sticky inflation and slower economic activity.

Brokerage Philstocks Financial Inc. said the local bourse tracked Wall Street’s overnight decline following the rise in long-term United States Treasury yields.

Trading activity remained muted, with net value turnover settling at P5.65 billion, below levels usually seen during stronger market rallies.

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Foreign investors were net sellers anew, recording net outflows of P115.32 million.

Sectoral performance was mixed during the session. The services sector led gains after rising 0.33 percent, while industrial counters posted the steepest decline at 0.79 percent.

Ayala Land Inc. emerged as the top gainer, climbing 1.76 percent to P15 apiece.