PSEi Closes at 6,164.89 on Monday Signalling a Near Seven-month Low

Investors have turned cautious regarding the inflation spikes in the region, which may cause interests to climb as the stock index declined to a near seven-month low.

On Monday, the Philippine Stock Exchange index (PSEi) closed at 6,164.89 after suffering a loss of 34.36 points or 0.55%. Meanwhile, the All Shares Index ended at 3,281.27,  a decrease of 21.46 points or 0.55%.

The recent inflation spike of 4.2% in April may lead investors to temper their trading activities for the week while waiting for a response from the US Federal Reserve, said Regina Capital head of sales Luis Limlingan.

“Philippine shares kicked off Monday on a weak note on concerns about the Fed policy in the face of rising inflation pressures,” explained Limlingan.

₱4.48 billion worth of shares were traded yesterday. Losers outnumbered gainers 127 to 79, while 40 names remained unchanged.

Limlingan believes that delays in the government’s vaccination programs and efforts to reopen the economy will also prove to have significant effects on market trading.

“The market expects the rotation trades to continue to play out with the vaccine rollout and the reopening of the economy,” added Limlingan.

Concerns surrounding an interest rate hike in the US, which may prove to spill over into business activities here, were also already mounting over the past week as evidenced by the PSEi falling below the 6,200.

Factors like the pressure from MSCI flows and Monde Nissin’s IPO — the largest local IPO in history at ₱55.89 billion — soaking up liquidity might confine the PSEi in a downward trend through the week, according to a report by COL Financial.

Source: PhilStar