April inflation shock pulls down stocks

MANILA, Philippines — The local stock market slipped yesterday, with sentiment dampened by inflation hitting a three-year high of 7.2 percent in April.

The bellwether Philippine Stock Exchange index tumbled by 0.74 percent or 44.08 points to end at 5,898.08.

The broader All Shares index likewise shed 0.36 percent or 12.21 points, settling at 3,337.40.

“The market traded choppy and closed lower after April CPI surged to 7.2 percent, a three-year high that sharply beat estimates and reinforced fears of a more hawkish Bangko Sentral ng Pilipinas and further rate hikes,” AB Capital Securities said.

“The peso weakened to 61.74 intraday, while regional markets also fell amid escalating US-Iran tensions,” it said. The local currency yesterday closed stronger at 61.55 from Monday’s 61.565.

RCBC chief economist Michael Ricafort said inflation could pick up further in the coming months after quickening to 7.2 percent in April, the highest since the 7.6 percent recorded in March 2023, in view of second round effects or higher prices of other affected goods and services.

Sectoral gauges were mostly in the red, with mining and oil taking the biggest hit as it fell by 2.07 percent.

Property and industrial advanced by 0.19 percent and 0.11 percent, respectively.

Trading activity was subdued as total turnover value stood at P5.03 billion, lower from the previous day’s P6.52 billion.

Decliners crushed advancers, 106 to 77, while 63 issues were unchanged.

ICTSI was the session’s top traded stock, declining by 0.8 percent to P747 per share, followed by banking heavyweights BDO Unibank and BPI which decreased by 0.09 percent and 3.37 percent, respectively, to P114.90 and P88.90.