PSEi snaps winning streak on faster inflation

Faster inflation recorded in December caused the local bourse to slide for the first time this year, along with investors locking in gains.

By the closing bell on Tuesday, the benchmark Philippine Stock Exchange Index (PSEi) slipped by 1.2 percent to 6,545.38, snapping its three-session winning streak.

Likewise, the broader All Shares Index lost 1.14 percent, or 43.34 points, to close at 3,750.69.

A total of 1.51 billion shares worth P4.51 billion changed hands as foreigners opted to shed their shares, stock exchange data showed. Foreign outflows totaled P894.32 million.

This comes after the Philippine Statistics Authority reported that inflation sizzled to 2.9 percent in December, faster than the 2.5 percent recorded the previous month.

Still, this brought the average inflation for 2024 to 3.2 percent, marking the first time since 2020 that the full-year price growth settled within the central bank’s 2 to 4 percent target range.

According to the PSA, the gain was due mainly to more expensive housing and utilities.

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At the bourse, only mining and oil firms booked gains, while services and property companies lost the most.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., noted that aside from inflation, profit-taking also pulled the PSEi below 6,600.

Ayala Land Inc. was the top-traded stock as it slipped by 3.33 percent to P26.10 per share, followed by International Container Terminal Services Inc., down 2.58 percent to P400; BDO Unibank Inc., down 1.62 percent to P145.50; Dito CME Holdings, down 9.42 percent to P2.02.