MANILA – Both the local stock market and the currency closed Friday weaker amid concerns over prolonged high inflation rates.
The Philippine Stock Exchange index (PSEi) ended the day weak with all counters in the red.
The local bourse plunged 76.26 points, or 1.23 percent, to the 6,142.90 level, with all shares closing 36.37 points lower at 3,329.42.
“Philippine shares ended the week in the red as investors turned more cautious following Fitch Group’s statement that inflation will likely stay elevated for an extended period,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The PSEi has also tracked the performance of its Asian peers, as the latest statement of US Federal Reserve Chair Jerome Powell weighed on the US and global markets.
“He said inflation remains too high and lower economic growth will likely (be) needed to bring it down,” Limlingan said. “Powell also said he doesn’t think rates are too high.”
Among the sectors, the Mining and Oil counter plummeted by 655.58 points.
Philstock Financials, Inc. assistant research manager Claire Alviar said it was pulled by the performance of Semirara Mining and Power Corp., which dropped by 11.4 percent “as investors sold shares on its ex-dividend date."
“Among index members, only four stocks were able to post gains, led by PLDT, Inc. increasing by 0.91 percent,” Alviar added.
Market value turnover for Friday stood at PHP3.51 billion.
Meanwhile, the Philippine peso moved sideways at 56.84 to the US dollar from 56.87 on the last day of trading.
It opened the day strong at 56.75 from 56.87 on Thursday.
The currency pair traded at a low of 56.75 and a high of 56.84, bringing the day’s average to 56.79 to the dollar.
The volume of trade on Friday declined to USD912.27 million from USD990.3 million the previous day. (PNA)
