Manila: Concerns over persistent high inflation rates impacted both the Philippine Stock Exchange index (PSEi) and the Philippine peso, leading to a weaker closing on Friday.
According to a news release by Philippine News Agency, Regina Capital Development Corp. head of sales Luis Limlingan attributed the decline to investors' heightened caution following Fitch Group's statement on inflation. The PSEi fell by 76.26 points, or 1.23%, closing at the 6,142.90 level. All shares ended 36.37 points lower at 3,329.42.
Limlingan further noted that the PSEi was influenced by the latest statements from US Federal Reserve Chair Jerome Powell, which also affected global markets. "He said inflation remains too high and lower economic growth will likely (be) needed to bring it down," Limlingan said.
Among the sectors, the Mining and Oil counter experienced the most significant loss, dropping 655.58 points. Claire Alviar, assistant research manager at Philstock Financials, Inc., said the decline was mainly due to the performance of Semirara Mining and Power Corp., which saw an 11.4% drop in shares. The market value turnover for the day stood at PHP3.51 billion.
As for the Philippine peso, it traded sideways, closing at 56.84 to the US dollar from 56.87 the previous day. The currency traded at a low of 56.75 and a high of 56.84, averaging 56.79 to the dollar for the day. The volume of trade for the day was USD912.27 million, down from USD990.3 million the day before.