Stocks index, peso slide amid better June inflation rate

Stocks index, peso slide amid better June inflation rate

MANILA – The Philippine Stock Exchange index (PSEi) slipped Tuesday, partly on deceleration of inflation last month to 4.1 percent while the peso weakened against the US dollar.

After starting the week up, the main equities index shed 0.62 percent, or 43.95 points, to 6,992.43 points.

All Shares followed with a drop of 0.39 percent, or 16.95 points, to 4,298.66 points.

Most of the sectoral counters also finished the trade in the negative territory namely the Property, 1.03 percent; Holding Firms, 0.73 percent; Industrial, 0.49 percent; Financials, 0.23 percent; and Mining and Oil, 0.10 percent.

Only the Services index gained during the day after it rose by 0.50 percent.

Volume reached 2.51 billion shares amounting to PHP5.1 billion.

Losers surpassed gainers at 112 to 96, while 52 shares were unchanged.

“Philippine shares slipped below the 7,000-mark as investors sold on news with the release of the June CPI (consumer price index) which was an improvement from the previous reading,” said Luis Limlingan, Regina Capital Development Corporation head of sales.

The Philippine Statistics Authority (PSA) on Tuesday reported the deceleration of the inflation rate last June to 4.1 percent from 4.5 percent in the last three months.

The average inflation to date stood at 4.4 percent, still above the government’s 2-4 percent target band until 2023.

Meanwhile, Limlingan said “fund managers are also awaiting the movement of the US market” following the Independence Day holiday in the US.

“The futures point to a muted start during the shortened trading week,” he said.

Meanwhile, the peso depreciated against the US dollar after closing the day at 49.5 from the previous session’s 49.24.

It opened the day at 49.23 and traded between 49.5 and 49.23.

Average level for the day stood at 48.411.

Volume totaled to USD1.068 billion, lower than the previous day’s USD1.073 billion. (PNA)

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