PH shares fall on rate hike fears

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Philippine shares fell on Friday after the latest inflation data sparked worries about a possible rate tightening by the Bangko Sentral ng Pilipinas (BSP) sooner rather than later.

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“The market fell on concerns due to the recent inflation figures that came out… as this may result in a rate increase from the Bangko Sentral ng Pilipinas,” Lexter Azurin, research
analyst at Unicapital Securities Inc., said in a text message.

The country’s inflation rate accelerated to 4.5 percent in May, the highest in more than two years.

“Lacking clear leads and burdened by a rather surprise spike in consumer prices, investors were a bit listless,” Accord Capital Equities Corp. analyst Justino Calaycay said.

The Philippine Stock Exchange index (PSEi) dropped 9.82 points or 0.14 percent to 6,762.62, while the wider all shares slipped 3.90 points or 0.10 percent to 4,073.28.

Most of the sectoral indices suffered losses. Holding firms were down 20.82 points or 0.34 percent to 6,165.41, and property shed 7.06 points or 0.27 percent to end at 2,628.13.
Financials slid 3.02 points or 0.19 percent to 1,596.70, and services declined 2.66 points or 0.13 percent to 2,036.28.

Industrials and mining and oil bucked the trend. Industrials gained 22.05 points or 0.11 percent to 10,366.56, while mining and oil went up by 13.45 points or 0.09 percent to 15,655.80.

Participation was more active with 2.3 billion shares traded valued at P7.9 billion. Decliners outpaced advancers 95 to 74, with 48 issues unchanged.

Some of the most actively traded stocks were Megaworld Corp., down 0.86 percent at P4.61; Philippine Long Distance Telephone Co., down 0.07 percent at P2,888.00; Belle Corp., unchanged at P4.99; BDO Unibank Inc., also unchanged at P90.20; and Energy Development Corp., up 0.96 percent at P6.29.

Azurin said the market may consolidate further next week.

On Thursday the market ended marginally higher after spending most of the day in the red following the inflation data announcement. Late buying in select blue chips nudged the main index up 5.87 points or 0.09 percent to 6,772.44, while the wider all shares gained 15.35 points or 0.38 percent to 4,077.18.

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