Stocks decline as inflation worries keep investors cautious

Shares fell anew on Tuesday, May, 29, as investors remained cautious against inflationary pressures and the weakening peso given the lack of positive leads.
The benchmark Philippine Stock Exchange index gave up 0.53% or 40.54 points to 7,602.36, marking its third straight day of decline. The all shares index likewise lost 0.16% or 7.44 points to 4,640.67 on Tuesday.
“I think lukewarm sentiment continues to be the primary driver so far, based on value turnover being below-average recently. A lack of catalysts to look forward to is leaving key risks such as inflation and the weak peso to remain top-of-mind for most investors,” China Bank Securities Corp. Research Director Garie G. Ouano said via text.
Regional indices also closed lower on Tuesday, affected by higher oil prices in the world market.
Most sectoral indices moved to negative territory, led by the counter for holding firms which plunged 1.16% or 87.44 points to 7,422.35. Mining and oil went down 0.54% or 52.57 points to 9,729.74, while industrial shed 0.53% or 58.45 points to 10,890.54. Property also dropped 0.51% or 19.50 points to 3,795.77.
On the other hand, services climbed 0.41% or 6.03 points to 1,488.86, while financials rose 0.09% or 1.63 points to 1,899.06.
Some 1.15 billion issues valued at P6.11 billion switched hands, higher than Monday’s value turnover of P5.39 billion. Decliners outpaced advancers, 101 to 89, while 54 issues were unchanged.
Foreign investors were net sellers for the 10th consecutive day, recording net sales of P169.14 million on Tuesday, although slower than the previous session’s P421.9 million.
The PSE announced that financial markets will be closed on June 12, Tuesday, in observance of the Philippine Independence Day. — Arra B. Francia