The PSEi resumed its downward trek after a small bounce the previous day as late selling wiped out gains made due to US inflation numbers coming within expectations.
The main index dropped by 64.94 points or 1.03 percent to close at 6,265.52 as Banks led the retreat with only Miners advancing. Volume rose to 967 million shares worth P6.19 billion as gainers edged out losers 104 to 96 with 40 unchanged.
“Philippines shares made a complete turnaround closing at the 6,200 level despite trading in the green and reaching 6,400 in the earlier session,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
US stocks surged overnight, driven by December’s CPI report which showed core inflation slowing to 3.2 percent, below the 3.3 percent forecast.
Headline inflation rose 2.9 percent year-on-year, meeting expectations, driving down the 10-year Treasury yield by 13 basis points to 4.65 percent and boosting growth stocks, while major banks reported strong earnings.
Philstocks Financial Research Manager Japhet Tantiangco said “the market was in the green territory for the most part of the day, driven by the positive spillovers from Wall Street and the ceasefire deal between Israel and Hamas.”
“However, investors turned cautious towards the end of the session, leading to a last minute profit taking which brought the bourse down. Net foreign selling worth P1.10 billion also contributed to the decline,” he noted.