Shares slide as market turns cautious before CPI

Philippine stocks slid anew on Monday, snapping a three-day climb as investors pocketed their profits and took a cautious stance before the release of the September consumer price index (CPI).

The benchmark Philippine Stock Exchange index (PSEi) sank by 1.77% or 108.54 points to close at 6,000.32, while the broader all shares index dropped by 1.13% or 41.90 points to 3,643.95.

“The PSEi declined after three consecutive days of gains last week as profit taking influenced today’s trading session. Investors remain cautious ahead of the inflation rate release tomorrow, which could influence the BSP’s (Bangko Sentral ng Pilipinas) next policy move,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Philippine Statistics Authority will release September inflation data on Tuesday (Oct. 7), while the BSP’s policy-setting Monetary Board will hold its review on Thursday (Oct. 9).

A BusinessWorld poll of 12 analysts yielded a median estimate of 1.9% for September inflation, within the BSP’s 1.5-2.3% forecast for the month.

If realized, the CPI would have accelerated from 1.5% in August but steadied from the 1.9% clip in September 2024. This would also be the fastest print in six months or since the 2.1% in February.

Meanwhile, the market is divided on the BSP’s next move, with 10 of 16 analysts in a separate BusinessWorld poll expecting the central bank to pause this week due to emerging inflation risks following three consecutive cuts that brought its policy rate to 5%.

The remaining six said the BSP is likely to deliver a fourth straight 25-basis-point (bp) reduction to support the economy amid weaker growth prospects.

The central bank has lowered rates by a cumulative 150 bps since it began its rate-cut cycle in August 2024. BSP Governor Eli M. Remolona, Jr. has left the door open to one last cut this year that could end this easing cycle.

“The market slumped anew back to 6,000 levels in a broad-based decline that saw all but two index stocks ending in the red, as risk-off sentiment continues to prevail,” AP Securities, Inc. said in a market note.

The majority of sectoral indices ended in the red on Monday. Holding firms declined by 2.02% or 100.57 points to 4,868.22; financials fell by 1.97% or 41.15 points to 2,042.04; industrials went down by 1.63% or 147.82 points to 8,868.57; property sank by 1.42% or 32.72 points to 2,261.87; and services dropped by 0.78% or 17.78 points to 2,252.48.

Meanwhile, mining and oil rose by 2.61% or 346.07 points to 13,605.29.

Decliners overwhelmed advancers, 139 to 64, while 58 names closed unchanged.

Value turnover surged to PHP 12.12 billion on Monday with 2.07 billion shares traded from the PHP 4.57 billion with 798.67 million stocks that changed hands on Friday.

Net foreign selling increased to PHP 341 million on Monday from PHP 80.56 million on Friday. — A.G.C. Magno