Philippine shares started September in the red on Monday, as a weakening peso and concerns over August’s inflation rate weighed on market sentiment.
The Philippine Stock Exchange index (PSEi), a gauge of 30 of the country’s largest companies, fell 15.22 points, or 0.25 percent, to 6,140.35. The broader all shares index also declined, slipping 3.33 points, or 0.09 percent, to 3,683.55.
“The PSEi extended its decline this Monday. Profit-taking continued amid the lack of a positive catalyst,” said Japhet Tantiangco, research head at Philstocks Financial Inc. He added that the peso’s weak position against the U.S. dollar also weighed on the market.
Analysts said investors are also concerned that August’s inflation rate will rise due to recent typhoons that affected the country last month.
Foreign investors continued their net selling streak for a sixth consecutive day, with outflows reaching P148.55 million. Value turnover was thin at P3.61 billion.
Among the sectors, only mining and oil, and property managed to post gains, rising 4.33 percent and 0.09 percent, respectively. Holding firms led the decline, falling 0.65 percent, followed by services, which was down 0.47 percent. Financials dipped 0.30 percent, and industrial dropped 0.10 percent.
Converge ICT Solutions Inc. was the day’s top gainer, with its share price increasing by 2.57 percent to P14.36. China Banking Corp. was the top index decliner, with its share price falling 5.22 percent to P63.50.
Chinese ecommerce giant Alibaba soared on Monday but Asian and European markets were mixed after Wall Street retreated from record highs.
Alibaba rocketed almost 20 percent following bumper results on Friday, including a surge in AI revenue. Its US-listed shares added 13 percent on Friday too.
Alibaba lifted the Hang Seng by two percent and Shanghai rose half a percent.
Other Asian indexes were in the red, however, with Japan’s Nikkei off more than one percent as chip shares came under pressure.
Seoul’s Kospi was also off even after South Korean data showed record monthly semiconductor exports in August despite growing pressure from US tariffs.
In Europe, London and Paris were higher in early trade but Frankfurt fell back. Oil prices edged up.
On Friday US stocks fell, with the Dow and S&P 500 retreating from record highs ahead of the long Labor Day weekend.
An acceleration of a key US inflation reading lowered prospects for sustained interest rate cuts by the Federal Reserve in the coming months.
Although a September cut of 25 points is probably still on the cards, “it may be hard for them to move as quickly or aggressively as they’d like, with inflation moving higher,” said eToro analyst Bret Kenwell.
German inflation rose in August for the first time this year, data showed Friday, which could lessen the chances for further European Central Bank rate cuts too.
On tariffs, a US appeals court ruled Friday that President Donald Trump exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.
The tariffs remained in place for now though, and hitting out at the ruling Trump said that “the United States of America will win in the end”.
Japan’s tariffs envoy cancelled a trip to Washington last week over plans for a presidential order including stepped-up Japanese purchases of US rice, the Nikkei reported. With AFP
