Local stocks tumbled as investors took a cautious stance ahead of the release of the country’s September inflation today.
The benchmark Philippine Stock Exchange index (PSEi) plummeted by 1.78 percent or 108.54 points to close at 6,000.32.
The broader All Shares index also plunged by 1.14 percent or 41.9 points to end at 3,643.95.
Luis Limlingan of Regina Capital said the PSEi declined after three consecutive days of gains last week as profit taking influenced yesterday’s trading session.
‘Investors remain cautious ahead of the inflation rate release, which could influence the Bangko Sentral ng Pilipinas’ next policy move,’ Limlingan said.
Inflation likely quickened in September, with most economists expecting it to return to the BSP’s two to four percent target for the first time in six months, following a sustained stretch of subdued price growth.
The BSP believes inflation accelerated further to a range of 1.5 to 2.3 percent in September after quickening to 1.5 percent in August from 0.9 percent in July.
AP Securities Inc., for its part, said the PSEi slumped back to 6,000 levels in a broad-based decline as risk-off sentiment continued to prevail.
All sectors were down, except for mining and oil, which climbed by 2.61 percent.
Holding firms, meanwhile, registered the largest drop at 2.02 percent, followed by financials with a 1.98 percent decline.
Trading was strong with total value turnover reaching P12.12 billion.
Market breadth was negative as decliners pummeled advancers, 139 to 64, while 58 issues were unchanged.