PSEi tracks Wall Street dip as inflation picks up

PHILIPPINE stocks fell for the second straight day on Wednesday, tracking Wall Street’s decline overnight and after consumer prices picked up last month.

The bellwether Philippine Stock Exchange index (PSEi) dropped by 0.39% or 26.92 points to close at 6,878.54. The broader all-share index fell by 0.46% or 16.68 points to 3,587.59.

“Negative cues from Wall Street overnight weighed on sentiment,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. Investors also continued to digest inflation, which quickened to 3.4% in February, she added.

US stocks closed lower on March 5, with the Dow Jones Industrial Average index dropping by 1.04% or 404.64 points to 38,585.19. The S&P 500 index fell by 1.02% or 52.30 points to 5,078.65; the Nasdaq Composite index declined by 1.65% or 267.92 points to 15,939.59; and the New York Stock Exchange index dipped by 0.45% or 79.21 points to 17,669.49.

On Tuesday, the Philippine Statistics Authority said inflation accelerated from 2.8% in January amid rising prices of food, particularly rice, though it was slower than 8.6% a year earlier.

Jovis L. Vistan, president at AB Capital Securities, Inc., attributed the local bourse’s decline to investors booking profits.

“Stocks experienced a period of profit-taking, exacerbated by the recent release of February’s inflation figures, which surpassed expectations,” he said in a Viber message. “The market’s vulnerability was further compounded by technical corrections in major global markets, which have been lingering near all-time highs.”

“Additionally, many investors are adopting a cautious stance, awaiting crucial US job data that will shed light on the trajectory of US interest rates,” he added.

Almost all sectoral indices closed lower on Wednesday.

Industrials fell by 1.29% or 118.58 points to 9,077.02, while property declined by 0.71% or 20.46 points to 2,862.79. Holding companies lost 0.52% or 34.29 points to 6,534.06, while services shed 0.45% or 8.02 points to 1,763.94. Mining and oil dropped by 0.35% or 30.49 points to 8,516.77.

The financial subindex gained 0.79% or 15.79 points to 2,006.39.

“Among the index members, Puregold Price Club, Inc. was at the top, increasing by 1.65%, while Century Pacific Food, Inc. lost the most by 5.07%,” Ms. Alviar said.

Value turnover fell to P4.85 billion with 503.78 million shares switching hands compared with 425.75 million stocks worth P5.37 billion on Tuesday.

Decliners beat advancers 104 to 78, while 58 stocks were unchanged. Net foreign buying fell to P50.33 million from P308.84 million on Tuesday.