Stocks fell ahead of the March US inflation report

Shares fell on Monday in a short trading week and before the release of US inflation data, which is expected to reach new highs in March.

The benchmark Philippine Stock Exchange Index (PSEi) closed down 29.73 points, or 0.42%, at 6,988.29 on Monday, with all broad stocks closing at 3,728.21, down 11.24 points or 0.30%.

“Share prices have opened in a negative tone this week. Market participants traded cautiously before the long Lantern holiday break, fearing that US inflation would scare investors, ”said Manny P., a Papa Securities Corporation equities strategist. Cruz said in a text message.

“Sideway trading closed at the last minute on Monday, which brought the local market down. Inflation in the Philippines, the Federal Reserve’s austerity measures, and the Russia-Ukraine war and its global economic impact have been blamed for the slump and sluggish trade, ”said Jafeto Lock, a senior research analyst at Philstox Financial, Inc. In a Viber message.

“Shares in the Philippines were sold out because the market lacked key catalysts during the short trading week. Sentiment also did not rise sharply due to losses in the US equity week but ended mixed on Friday as investors prepared for tougher monetary policy from the Fed, “added Lewis A. Limlingan, head of sales at Regina Capital Development Corporation.

Markets moved higher by 50 basis points (bps) at both May and June meetings, indicating a rise in prices, at risk of a larger rate hike from the Federal Reserve, Reuters reported.

In March, the Fed raised its benchmark rate by 25 bps for the first time since 2018 to fight inflation, reaching a 40-year high in February.

The March US Consumer Price Report will be released on Tuesday, and the median forecast is 1.2% for stratospheric growth, and 8.5% for annual inflation.

Asian stocks fell on Monday, a week before the central bank meeting and US inflation data.

At home, all sectoral indices ended in red on Monday. Assets decreased by 24.17 points or 0.74% to 3,243.84; Mining and oil fell 80.32 points, or 0.64%, to 12,349.86; Industry fell 45.34 points, or 0.46%, to 9,621.75; Holding companies fell 25.42 points, or 0.38%, to 6,543.22; Financial dropped 1.87 points, or 0.11%, to 1,667.81; And services fell 1.46 points, or 0.07%, to 1,930.86.

Meanwhile, the Midcap Index rose 0.04 points, or 0.52%, to close at 1,191.22, and the Dividend Yield Index fell 4.60 points, or 0.27%, to 1,692.61.

The turnover fell to P3.36 billion with a change of hands from P4.02 billion to 882.34 million shares with 659.97 million issues issued on Friday.

Rejecting pioneers, 102 vs. 75, while 55 names remained unchanged.

P208.85 million net overseas sales were seen on Monday vs. P458.19 million net buying was seen in the trading day before. – LMGJ Jackson With Reuters