MANILA – Rising crude prices and inflationary pressures globally fueled investors decision to pull out shares making the Philippine Stock Exchange index (PSEi) plunged to its new low for the year.
The benchmark PSEi fell to 6,047.97 level, losing 76.60 points, and the broader All Shares shed 34.94 points to 3,274.30.
"The index fell to its lowest close in more than a year on concerns that rising oil prices and other inflationary pressures will force the BSP (Bangko Sentral ng Pilipinas) and Federal Reserve to keep policy rates elevated for longer," China Bank Capital Corp. managing director Juan Paolo Colet said.
He added that both central banks are expected to keep rates during their respective meetings this week, but rising uncertainty about the path of interest rates over the next several months dims investor sentiment on the local bourse.
All counters closed in the red on Tuesday, with biggest drop coming from Industrial, down by 99.87 points.
This was followed by Holding Firms (-83.65 points), Mining and Oil (-70.53 points), Property (-54.76 points), Services (-10.49 points), and Financials (-6.35 points).
Philstocks Financial, Inc. research associate Claire Alviar said net market value turnover remained weak at PHP3.5 billion, as foreign investors continue to exit the local market with a net selling of PHP566.33 million.
Losers advanced gainers at 128 to 62, leaving shares of 43 counters unchanged.
Meanwhile, the Philippine peso gained by PHPP0.11 after it finished at 56.76 versus a US dollar from Monday's close of 56.87.
It opened the day at 56.71 from last trading's kick off at 56.80.
The currency pair traded between 56.70 and 56.83, bringing the average level for the day at 56.77 to the greenback.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said peso-dollar exchange will range between 56.65 and 56.85 on Wednesday.
Volume of trade on Tuesday increased to USD1.17 billion from previous day's trading of USD821.1 million. (PNA)