MANILA, Philippines — Despite prospects for future hikes in the Federal Reserve's key rates and…
Concerns about inflation have caused a drop in the Philippine stock index and the peso.
MANIILA – Due to inflation fears, the Philippines’ major stock index fell again on Wednesday, and the local peso depreciated versus the US dollar.
The Philippine Stock Exchange index (PSEi) dropped 0.92 percent to 6,712.21 points, a loss of 62.47 points.
Following that, the All Shares index rose 0.47 percent, or 17.13 points, to 3,589.78 points.
The majority of sectors indices fell during the day, including Financials, which fell 1.51%, Industrials, which fell 1.47 percent, Services, which fell 1.07 percent, and Holding Firms, which down 0.59 percent.
Mining and oil, on the other hand, increased by 0.95 percent, while property increased by 0.20 percent.
With 659.26 million shares worth PHP5.98 billion traded, the volume was light.
At 108 to 76, decliners outnumbered advancers, with 46 shares remaining unchanged.
“Philippine stocks ended the session in the red, highlighting concerns that high inflation is dragging on economic growth,” said Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC).
This comes as the euro zone’s pace of price hikes reached a new high of 8.1 percent in May, marking the seventh consecutive month of acceleration.
Limlingan also mentioned the increase in oil costs after the EU agreed to exclude Russia from supplying most crude oil.
According to him, the price of Brent crude oil increased by 1.4 percent to USD123.37 a barrel.
“Oil prices rose Tuesday as the European Union announced a ban on Russian crude, creating the prospect of much higher fuel prices and escalating economic repercussions for both consumers and the White House,” he said.
The local currency dropped in relation to the US dollar, ending the day at 52.48 from 52.37 on Tuesday.
It started the day at 52.43 and fluctuated between 52.49 and 52.42 during the day. For the day, the average level was 52.46.
Volume was USD724.22 million, down from USD925.62 million the previous day.
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