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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.<\/p>\n
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.<\/p>\n
\u201cThe PSEi retreated after three straight days of increases from last week, as profit-taking influenced today\u2019s market activity. Investors are remaining cautious prior to tomorrow’s inflation rate report, which may impact the BSP\u2019s (Bangko Sentral ng Pilipinas) forthcoming policy decision,\u201d stated Regina Capital Development Corp. Head of Sales Luis A. Limlingan in a Viber message.<\/p>\n
The Philippine Statistics Authority is set to release the September inflation figures on Tuesday (Oct. 7), while the BSP\u2019s policy-setting Monetary Board will conduct its review on Thursday (Oct. 9).<\/p>\n
A BusinessWorld<\/i> survey of 12 analysts produced a median forecast of 1.9% for September inflation, falling within the BSP\u2019s predicted 1.5-2.3% range for the month.<\/p>\n
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.<\/p>\n
In the meantime, analysts are split regarding the BSP\u2019s next action, with 10 out of 16 analysts in a separate BusinessWorld<\/i> 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%.<\/p>\n
The other six predicted the BSP may implement a fourth consecutive 25-basis-point (bp) cut to bolster the economy amid diminished growth prospects.<\/p>\n
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.<\/p>\n
\u201cThe 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,\u201d AP Securities, Inc. noted in a market report.<\/p>\n