Main index drops as market awaits inflation data

The main index ended lower on Wednesday as investors locked in gains before the release of inflation data and as worries over the Philippine economy’s prospects affected market sentiment.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.45% or 29.01 points to close at 6,372.95, while the broader all-share index increased 0.18% or 6.56 points to end at 3,555.

“The local bourse pulled back to the 6,300 level as investors booked profits ahead of the upcoming inflation report, taking gains amid expectations that price pressures would remain broadly stable and uncertainty over potential market reactions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market dropped as the uncertainties over the local economy’s outlook weighed on sentiment. Investors also digested the national government’s latest outstanding debt which reached a new record at P17.71 trillion,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Finally, investors took a cautious stance ahead of the release of the country’s January inflation data.”

The Philippine Statistics Authority will release January inflation data on Thursday (Feb. 5).

A BusinessWorld survey of 18 economists yielded a median forecast of 1.8% for the January consumer price index, within the BSP’s 1.4% to 2.2% projection for the month. That means inflation would be unchanged from December and slower than 2.9% a year earlier.

January would also mark the 11^th straight month that inflation stayed below the Bangko Sentral ng Pilipinas’ (BSP) 2% to 4% annual target.

Analysts earlier said that benign inflation would allow the BSP to cut rates further to support the economy, especially after growth slowed to a five-year low in 2025 due to the fallout from a corruption scandal that stalled both public and private spending.

Sectoral indices ended mixed on Wednesday. Property dropped by 1.45% or 32.44 points to 2,204.62; holding firms retreated by 0.83% or 42.42 points to 5,029.40; and services decreased by 0.74% or 19.81 points to 2,646.94.

Meanwhile, mining and oil increased by 1.92% or 328.87 points to 17,457.82; industrials rose by 0.91% or 82.46 points to 9,130.84; and financials climbed by 0.28% or 5.97 points to 2,125.99.

“Globe Telecom, Inc. was the day’s index leader, climbing 5.07% to PHP 1,678. San Miguel Corp. was the main index laggard, falling 4.31% to PHP 76.55,” Mr. Tantiangco said.

Market breadth was positive, with 104 advancers against 94 decliners, while 77 stocks were unchanged.

Value turnover inched up to PHP 6.94 billion with 1.13 billion shares traded from the PHP 6.93 billion with 1.15 billion issues that changed hands on Tuesday.

Net foreign buying increased to PHP 279.62 million from PHP 236.41 million in the previous session. — A.G.C. Magno