PSEi sinks below 5,900 as inflation hits three-year-high

Philippine stock prices declined on Tuesday, as investor sentiment was dragged by the faster-than-expected inflation print in April, the fastest in three years, along with policy uncertainty moving forward.

The PSEi shed 44.08 points or 0.74% to close at 5,898.08, while the broader All Shares index lost 12.21 points or 0.36% to 3,337.40.

Nearly all sectoral indices closed posted red—financials down 1.75%, holding firms 0.70%, services 0.67%, and mining and oil 2.07%. The industrial index gained 0.11%, while property climbed 0.19%.

“The PSEi ended lower after inflation came in above expectations, dampening market sentiment,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile statement.

“Investors turned turned risk-off as they reassessed the potential policy response of the Bangko Sentral ng Pilipinas. Uncertainty over the the central bank’s next move kept buying activity subdued,” he added.

More than 959.550 million shares, valued at P5.027 billion, changed hands. Decliners led advancers, 106 to 77, while 63 issues were unchanged.

The Philippine Statistics Authority (PSA) earlier on Tuesday reported the April inflation print at 7.2%, faster than the 4.1% in March and the 1.4% a year ago.

This was the fastest since March 2023’s 7.6%, and above the BSP’s 5.6% to 6.4% estimate for the month. — BM, GMA News