PSEi drops in cautious trade before inflation data

PHILIPPINE SHARES dropped on Monday to snap their five-day winning run as investors stayed on the sidelines before the release of key data later this week.

The benchmark Philippine Stock Exchange index (PSEi) went down by 0.2% or 13.14 points to close at 6,398.77 on Monday, while the broader all shares index declined by 0.2% or 7.19 points to finish at 3,479.47.

Stocks were “flattish” as investors took a wait and see stance ahead of the release of June Philippine inflation data, First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

“Philippine shares started the second half of 2024 softly, slipping to fall just below the 6,400 mark as investors brace themselves for a new batch of economic data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine Statistics Authority will release June consumer price index (CPI) data on Friday, July 5.

Headline inflation was likely steady in June and settled within the central bank’s 2-4% annual target for a seventh straight month, analysts said.

A BusinessWorld poll of 14 analysts conducted last week yielded a median estimate of 3.9% for the June CPI, within the central bank’s 3.4-4.2% forecast for the month.

If realized, June inflation would match the 3.9% recorded in May. It will also be slower than the 5.4% print in the same month a year ago.

Investors are also awaiting a speech by US Federal Reserve Chair Jerome H. Powell as well as the release of US jobs data and minutes of the Fed’s June meeting this week, Mr. Limlingan added.

The market closed lower amid “healthy” profit-taking and after the release of the latest manufacturing purchasing managers’ index (PMI) data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

The S&P Global Philippines manufacturing PMI dropped to a three-month low of 51.3 in June from 51.9 in May, data released on Monday showed. A PMI reading above 50 signals better operating conditions from the previous month, while a reading below 50 shows otherwise.

Almost all sectoral indices ended lower on Monday. Holding firms dropped by 0.56% or 31.28 points to 5,521.43; services went down by 0.47% or 9.43 points to 1,986.86; mining and oil retreated by 0.24% or 20.46 points to 8,461.09; property declined by 0.17% or 4.37 points to 2,513.05; and industrials decreased by 0.06% or 5.39 points to 8,980.96.

Meanwhile, financials rose by 0.12% or 2.32 points to 1,926.91.

Value turnover fell to P3.34 billion on Monday with 417.96 million shares changing hands from the P6.5 billion with 1.16 billion issues traded on Friday.

Decliners outnumbered advancers, 103 versus 83, while 53 names closed unchanged.

Net foreign buying went down to P88.92 million on Monday from P393.53 million on Friday. — R.M.D. Ochave