PSEi down on profit-taking before inflation data

PHILIPPINE SHARES retreated on Thursday, ending a three-day climb as investors pocketed profits and took a cautious stance before the release of May inflation data and amid continued uncertainty in the Middle East.

The Philippine Stock Exchange index (PSEi) dropped by 0.69% or 41.24 points to close at 5,911.93, while the broader all shares index went down by 0.48% or 16.24 points to end at 3,323.08.

“The local market pulled back after three consecutive days of rallying as investors took profits amid reignited tensions between the US and Iran. Israeli Prime Minister Benjamin Netanyahu said that the US and Israel are prepared to strike Iran again if necessary, following the latter’s latest attacks. This led to fears that oil prices may spike again,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The Philippine market ended lower as profit-taking occurred following three consecutive days of gains. Investors remained selective in their positioning as they awaited the release of the latest inflation data tomorrow. Cautious sentiment kept overall trading activity measured, with market participants looking for clues on the direction of interest rates and the broader economy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, in a boost to hopes for a broader deal to end the US-Israeli war on Iran, Reuters reported.

Last week, Iran and the US signaled progress towards a tentative initial agreement to halt the war and reopen the strait, but the two sides have yet to sign off on the deal, which would leave more complex negotiations for later.

Meanwhile, Philippine inflation may have accelerated to 7.9% last month from 7.2% in April and 1.3% a year earlier, according to a median estimate of 16 economists polled by BusinessWorld. This would be the fastest pace in over three years or since the 8.6% in February 2023.

Most sectoral indices closed lower on Thursday. Services sank by 2.22% or 70.03 points to 3,074.85; mining and oil slid by 1.41% or 255.64 points to 17,810.58; property dropped by 0.76% or 14.22 points to 1,848.94; industrials fell by 0.3% or 25.10 points to 8,303.71; and holding firms went down by 0.26% or 11.31 points to 4,313.31.

Meanwhile, financials rose by 1.29% or 23.06 points to 1,808.55.

Decliners outnumbered advancers, 105 to 68, while 70 names were unchanged.

“Century Pacific Food, Inc. was the day’s index leader, climbing 4.37% to P26.30. Ayala Land, Inc. was the worst index performer for the day, dropping 4.76% to P14,” Mr. Tantiangco said.

Value turnover went down to P7.002 billion on Thursday with 377.84 million shares traded from the P8.04 billion with 451.88 million issues on Wednesday.

Net foreign selling was at P298.93 million, a reversal of the P53.01 million in net buying in the previous session. — Alexandria Grace C. Magno