MANILA, Philippines — The stock market returned to its losing ways after the country’s inflation was reported to have quickened in April.
Following a strong week-opener, the Philippine Stock Exchange index (PSEi) lost 0.51 percent or 33.91 points to end at 6,618.58 yesterday.
The broader All Shares index likewise declined by 0.31 percent or 10.76 points to closed at 3,505.75.
“The PSEi tumbled as inflation reading in April inched up to 3.8 percent driven largely by the higher prices for food and non-alcoholic beverages due to the increased cost of vegetables,” Luis Limlingan of Regina Capital said.
The Philippine Statistics Authority reported that headline inflation accelerated for the third straight month to 3.8 percent in April from 3.7 percent in March.
Philstocks Financial research and engagement officer Mikhail Plopenio said investors exercised caution amid the continuous climb of inflation, nearing the upper end of the government’s two to four percent target range.
Plopenio said investors are awaiting the release of the gross domestic product (GDP) growth for the first quarter scheduled tomorrow.
“Investors also traded cautiously while waiting for the Philippines’ Q1 GDP data set to be released later this week,” he said.
Plopenio said net market value turnover was quite strong yesterday at P5.72 billion, higher than the year-to-date average of P4.97 billion.
The sectoral gauges were a mixed bag, with mining and oil leading the way with a 2.25 percent climb.
Property, meanwhile, suffered the biggest drop of 2.66 percent.