The Philippine Stock Exchange index (PSEi) fell following the decline in US bourses last Friday as investors are jittery about factors that may further delay interest rate cuts.
The main index lost 67.85 points or 1.12 percent to close at 5,993.48 on Monday, Feb. 17, as the property sector plunged, while miners and services managed to advance. A total of 1.23 billion shares worth P5.32 billion changed hands, as losers beat gainers 114 to 74, with 61 unchanged.
“Philippine shares kicked off the trading week in the red as the local bourse closed below the 6,000-mark as investors remained cautious despite higher-than-expected cash remittances at $3.38 billion,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that Wall Street had mixed results as investors took a breather from the week’s strong gains, assessing developments in global trade and inflation.
Investor sentiment stabilized after inflation data last week signaled a potentially softer reading for the US Federal Reserve's preferred PCE price index due later this month.
Key economic data releases this week include the US jobless claims report on Thursday and the existing home sales report on Friday. The minutes from the January Federal Open Market Committee meeting will be released on Wednesday, alongside several speaking engagements from Fed officials.
Philstocks Financial Research Manager Japhet Tantiangco said "the local bourse extended its decline as investors continue to deal with the uncertainties on the global economy caused by the US’ recent tariff moves. Investors are also concerned with the pace of the BSP’s policy easing following its pause in their latest meeting."