Shares drop on profit taking before inflation data

Philippine stocks ended their three-day climb on Monday as investors booked profits before the release of April inflation data.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.81% or 52.23 points to close at 6,359.63, while the broader all shares index went down by 0.58% or 21.86 points to 3,719.26.

“Philippine shares succumbed to profit taking, pulling back to the 6,300 level, while investors wait for the latest inflation print,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine Statistics Authority is scheduled to release April consumer price index (CPI) data on May 6 (Tuesday).

A BusinessWorld poll of 14 analysts yielded a median estimate of 1.8% for the April CPI. This is within the Bangko Sentral ng Pilipinas’ (BSP) 1.3% to 2.1% forecast.

If realized, April inflation would be steady from the March print and be sharply slower than the 3.8% clip logged in the same month in 2024. This would also mark the ninth straight month that inflation settled within the BSP’s 2-4% target range.

“The PSEi corrected lower, considered a healthy profit-taking after gaining for three straight trading days, after US stock market futures declined by 0.6%-0.7% after the weaker US dollar recently weighed on sentiment,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Philippine stocks also went down ahead of the US Federal Reserve’s policy meeting this week, where it is widely expected to keep rates steady, Mr. Ricafort added.

The dollar weakened and US equity-index futures dropped, threatening to end the S&P 500 index’s longest winning streak in two decades, as uncertainty about US trade policy hung over markets, Bloomberg reported.

A gauge of the greenback declined for a second day and contracts for the S&P 500 retreated 0.7% after US President Donald J. Trump said he had no plans to talk to his Chinese counterpart this week, though he signaled trade deals with other unspecified partners could come as soon as this week.

All sectoral indices closed lower on Monday. Holding firms sank by 1.6% or 87.60 points to 5,357.68; mining and oil fell by 1.52% or 146.83 points to 9,456.89; services declined by 0.72% or 14.52 points to 1,978.52; financials went down by 0.45% or 11.17 points to 2,462.59; property decreased by 0.45% or 10.55 points to 2,299.67; and industrials dropped by 0.17% or 15.69 points to 8,931.82.

Value turnover fell to PHP 5.67 billion on Monday with 699.74 million shares traded from the PHP 6.86 billion with 706.15 million issues exchanged on Friday.

Decliners edged out advancers, 93 versus 92, while 61 names were unchanged.

Net foreign selling stood at PHP 77.41 million on Monday versus the PHP 660.33 million in net buying recorded on Friday.

Mr. Ricafort put the PSEi’s next minor support at 6,205-6,300 and minor resistance at 6,490. — Revin Mikhael D. Ochave