Market in the red for second day

The stock market yesterday extended its losing streak for a second straight day as investors wait for direction on how domestic and global inflation will tread for the rest of the year.

The Philippine Stock Exchange shredded 16.68 points, or 0.46 percent, index (PSEi) dipped by 26.92 points, to 3,587.59. or 0.39 percent, to close at 6,878.54, Regina Capital Development while the broader All Shares index Corp. head of sales Luis Limlingan said the market weakened for a second consecutive day, as investors are waiting for policy direction from the Bangko Sentral ng Pilipinas (BSP).

In particular, investors wanted to know the timing of rate cuts that are tabled for the latter half of the year.

To recall, inflation quickened to a two-month high of 3.4 percent in February from 2.8 percent in January, hitting the upper band of the BSP forecast of 2.8 percent to 3.6 percent.

BSP Governor Eli Remolona Jr. told reporters that it is too soon to declare victory in the fight against inflation.

“The models and the data seem to suggest that it’s still too soon to declare victory,” Remolona said.

Philstocks Financial Inc. assistant research manager Claire Alviar said investors are taking a wait and see mode to see how inflation will pan out.

The market is also taking a hit from the negative sentiment abroad, forcing investors to slow their roll to assess

“The local bourse dropped by 26.92 points to 6,878.54 as investors continued to digest the latest inflation rate figures, (and) negative cues from Wall Street overnight weighed on the sentiment,” Alviar said.

A total of P4.81 billion worth of shares changed hands throughout trading, with losers edging out the winners, 104 to 78, while 50 issues were unchanged.

All sectors in the index except for financials posted declines, with industrial turning in the worst loss at 1.29 percent.