Shares started the week on a negative note, as the main index digested the impacts of interest rate hikes and higher inflation in the long-term.

The 30-member Philippine Stock Exchange index shed 0.86% or 72.40 points to close at 8,386.17 on Monday, March 5. The broader all-shares index also dipped 0.42% or 21.45 points to 5,043.89.

“The market today still continue its consolidation…(now the news that are coming in are) interest rates being adjusted for the US and the Philippines also. And how to address the inflation. But overall I feel that the economic condition of the country will be okay,” Summit Securities, Inc. President Harry G. Liu said in a phone interview on Monday.

Investors have been staying on the sidelines due to fears of higher inflation, which the Bangko Sentral ng Pilipinas predicts to have come in at 4-4.8% last February. Mr. Liu however said the country’s long term prospects remain positive.

“There will be an effect, that’s why the peso is affected for the meantime. But latter part, the foreign investments, economic programs keep on coming in, there will be a lot of spending. So this will help pressure inflation from getting any further on the wrong side,” the analyst said.

IB Gimenez Securities, Inc. Joylin F. Telagen meanwhile attributed Monday’s decline to concerns on United States President Donald J. Trump announcement last week, where he said that he wants to impose a 25% tariff on imported steel and 10% tariff for aluminum.

“I think today’s sell-off was following global concern on the possible impact of American tariffs to the global economy,” Ms. Telagen said via text. — Arra B. Francia

RELATED ARTICLESMORE FROM AUTHOR