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PHILIPPINE STOCKS dipped again on Monday, breaking a three-day ascent as investors took their earnings and adopted a careful approach ahead of the upcoming September consumer price index (CPI) announcement.
The benchmark Philippine Stock Exchange index (PSEi) fell by 1.77% or 108.54 points, concluding at 6,000.32, while the broader all shares index declined by 1.13% or 41.90 points to reach 3,643.95.
“The PSEi retreated after three straight days of increases from last week, as profit-taking influenced today’s market activity. Investors are remaining cautious prior to tomorrow’s inflation rate report, which may impact the BSP’s (Bangko Sentral ng Pilipinas) forthcoming policy decision,” stated Regina Capital Development Corp. Head of Sales Luis A. Limlingan in a Viber message.
The Philippine Statistics Authority is set to release the September inflation figures on Tuesday (Oct. 7), while the BSP’s policy-setting Monetary Board will conduct its review on Thursday (Oct. 9).
A BusinessWorld survey of 12 analysts produced a median forecast of 1.9% for September inflation, falling within the BSP’s predicted 1.5-2.3% range for the month.
If this comes to pass, the CPI would have risen from 1.5% in August but stabilized from the 1.9% rate in September 2024. This would also mark the quickest reading in six months, since the 2.1% recorded in February.
In the meantime, analysts are split regarding the BSP’s next action, with 10 out of 16 analysts in a separate BusinessWorld survey anticipating that the central bank will pause this week due to emerging inflationary pressures after three consecutive rate cuts that reduced its policy rate to 5%.
The other six predicted the BSP may implement a fourth consecutive 25-basis-point (bp) cut to bolster the economy amid diminished growth prospects.
The central bank has decreased rates by a total of 150 bps since initiating its rate-cut cycle in August 2024. BSP Governor Eli M. Remolona, Jr. has kept the option open for one final cut this year, potentially concluding this easing period.
“The market declined once more, returning to the 6,000 level in a broad downturn that witnessed all but two index stocks finishing in negative territory, as a risk-averse sentiment prevails,” AP Securities, Inc. noted in a market report.
Most sectoral indices closed in the negative on Monday. Holding firms fell by 2.02% or 100.57 points to 4,868.22; financials decreased by 1.97% or 41.15 points to 2,042.04; industrials dropped by 1.63% or 147.82 points to 8,868.57; property plunged by 1.42% or 32.72 points to 2,261.87; and services sank by 0.78% or 17.78 points to 2,252.48.
Conversely, mining and oil saw an increase of 2.61% or 346.07 points, reaching 13,605.29.
Decliners outnumbered advancers, with 139 to 64, while 58 stocks remained unchanged.
Value turnover skyrocketed to P12.12 billion on Monday with 2.07 billion shares exchanging hands, up from P4.57 billion with 798.67 million stocks traded on Friday.
Net foreign selling rose to P341 million on Monday, compared to P80.56 million on Friday. — A.G.C. Magno
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