PSEi plunges to lowest level for the year

Share prices fell for the third consecutive session, plunging the main index to its lowest level for the year as no new catalysts could convince investors to return to the market, traders said.

The Philippine Stock Exchange index (PSEi) broke the 6,300 support level to end at 6,299.69, down 59.46 points or 0.93 percent, while the broader All Shares index slipped to 3,882.43, down 24.39 points or 0.62 percent.

Most sectors finished in the red, with holding firms and property among the biggest decliners. Only the mining and oil index managed to stay afloat.

Total value turnover further thinned to P3.891 billion. Market breadth was expectedly negative, 114 to 92, while 43 issues were unchanged.

“Local market fell slightly below the 6,300-level as April inflation came in at 4.5 percent (versus the average 4.7 percent market estimate), marking the fourth straight month inflation breached the upper end of the

Bangko Sentral ng Pilipinas’ target,” AB Capital Securities said in a market commentary.

Philstocks Financial research analyst Claire Alviar also attributed the market drop to the April inflation rate which, while lower than market expectations, was still above the BSP’s target range for the year.

Inflation registered at 4.5 percent in April, the same figure as in March, and was within the BSP’s forecast range for the month but higher than the BSP’s two to four percent target for this year, due to continued supply-side pressures.

“Most traders were on the sidelines as well given the weak value turnover of P3.8 billion, the lowest year-todate. Net foreign selling of P653 million also weighed on the market’s performance,” Alviar said.