Philippine shares barely moved on Tuesday as investors await US inflation data for April that could dictate the US Federal Reserve’s monetary policy move.
The benchmark Philippine Stock Exchange index (PSEi) inched up by 0.002% or 0.11 point to close at 6,507.26. The broader all-share index slid by 0.25% or 8.93 points to 3,467.25.
“The index ended the day flat but with increased value turnover as investor sentiment was at an equilibrium between bargain hunters and cautious traders ahead of US May inflation data,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said in a Viber message.
“The market would want to see continued deceleration in US inflation figures, which could give the Fed leeway to forego any rate hikes in the near term,” he added.
Many investors were waiting for US inflation data, “which would likely determine market sentiment,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.
The June Federal Open Market Committee meeting will happen this week and it is expected to come out with a statement on Wednesday.
“Back at home, the key economic releases for this shortened week are the March foreign direct investments on June 13 and April cash remittances on June 15,” he added.
The US Fed raised it benchmark overnight interest rates by 25 basis points (bps) at its policy meeting last month. It has raised fund rates by 500 bps since March 2022 to 5%-5.25%. Its next policy meeting is set for June 13-14.
Back home, majority of sectoral indices fell on Tuesday. Services went up by 0.13% or 2.11 points to 1,543.87, while holding firms rose by 0.12% or 7.93 points to 6,483.17.
Meanwhile, industrials fell by 0.62% or 57.79 points to 9,209.04; mining and oil slid by 0.45% or 46.42 points to 10,064.59; financials declined by 0.26% or 4.82 points to 1,841.59; and property fell by 0.005% or 0.14 points to 2,626.84.
Value turnover inched down to PHP 5.51 billion, with 517.1 million shares changing hands.
Decliners outnumbered advancers 127 versus 68, while 43 stocks were unchanged.
Net foreign selling increased to PHP 217.41 million from PHP 202.11 million on Friday. — AHH
This article originally appeared on bworldonline.com