Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

PHL stocks drop on mounting inflation concerns

by
June 30, 2022
in Investing News
0
PHL stocks drop on mounting inflation concerns
0
SHARES
17
VIEWS
Share on FacebookShare on Twitter
REUTERS

STOCKS declined further on Thursday as the Bangko Sentral ng Pilipinas (BSP) said headline inflation could have reached an almost four-year high in June.

The benchmark Philippine Stock Exchange index (PSEi) plunged by 147.76 points or 2.34% to close at 6,155.43 on Thursday, while the broader all shares index sank by 52.89 points or 1.56% to 3,336.23.

“The market declined amid a lack of positive catalysts at home, coupled with a higher inflation rate expectation this June. The BSP projects the inflation rate this June to settle within 5.7 to 6.5%. This weighed heavily on the sentiment as consumers’ purchasing power is anticipated to weaken. Moreover, the second-round effects are also expected, which may further push the inflation upward in the coming months,” Philstocks Financial Research Associate Claire T. Alviar said in a Viber message.

Ms. Alviar added that the possibility of an interest rate increase bigger than 25 basis points (bps) by the BSP due to rising inflation also weighed on sentiment.

“Philippine shares ended the last trading session of the semester in the red as the streets continued to search for the bottom of a vicious market sell-off. Concerns over a slowing economy and aggressive rate hikes consumed much of the first half of the year and fears of a recession are rising,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP’s June forecast range is well above its 2-4% target and 5% projection for the year. Its low end would be the fastest monthly print since November 2018’s 6.1%, while the high end would be the quickest since October 2018’s 6.9%.

In May, headline inflation was at 5.4%.

On Wednesday, BSP Governor Felipe M. Medalla told reporters that the central bank may consider a more aggressive rate hike at its Aug. 18 meeting if inflation keeps its upward momentum, but noted the decision will remain data-dependent.

Early in June, ahead of the US Federal Reserve’s decision to increase its own rates by 75 bps at its own meeting that month, Mr. Medalla said he is not keen on raising borrowing costs by more than 25 bps per meeting. The BSP on May 19 and June 23 hiked benchmark interest rates by 25 bps.

Majority of the sectoral indices ended in the red on Thursday, except mining and oil, which climbed by 100.71 points or 0.90% to 11,235.17, and industrials, which rose by 67.16 points or 0.74% to 9,110.72.

Meanwhile, services went down by 66.37 points or 3.86% to 1,649.01; holding firms fell by 202.42 points or 3.41% to 5,720.24; financials retreated by 31.07 points or 2.10% to 1,442.36; and property gave up 32.33 points or 1.12% to end at 2,835.31.

Decliners bested advancers, 117 versus 71, while 47 names ended unchanged.

Value turnover increased to P6.35 billion with 793.85 million shares changing hands from the P4.91 billion with 532.42 million issues seen on Wednesday.

Net foreign selling went up to P843.45 million on Thursday from P645.8 million seen the previous trading day. — Luisa Maria Jacinta C. Jocson

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
Peso rebounds on rate hike bets, oil

Peso rebounds on rate hike bets, oil

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

910 more cases of Omicron subvariants detected

910 more cases of Omicron subvariants detected

July 20, 2022
Kyrie Irving for Russell Westbrook talks in progress

Kyrie Irving for Russell Westbrook talks in progress

July 4, 2022
Ahunan launches ‘Tayo Na Pakil’ community development program

Ahunan launches ‘Tayo Na Pakil’ community development program

August 11, 2022
BSP ready to act as inflation seen below 4% in 2023

BSP ready to act as inflation seen below 4% in 2023

August 5, 2022
SEC-Davao issues warning vs non-profit groups reportedly soliciting investments

SEC-Davao issues warning vs non-profit groups reportedly soliciting investments

June 8, 2022
Supermarkets say commodity prices to further rise 

Supermarkets say commodity prices to further rise 

June 19, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.