The acceleration of United States’ consumer price index (CPI) to 7.5 percent in January 2022 – the highest since 1982 – hurt both the Philippine Stock Exchange index and the peso on Friday.
The main equities index shed 2.18 percent, or 162.26 points, to 7,270.36 points.
All Shares declined by 1.34 percent, or 52.61 points, to 3,872.13 points.
Only the Property index gained during the day after it rose by 0.21 percent.
Services led the sectoral counters in terms of contraction after it dropped by 3.53 percent.
Trailing were Holding Firms, 2.77 percent; Financials, 2.21 percent; Industrial, 1.83 percent; and Mining and Oil, 0.96 percent.
Volume reached 1.93 billion shares amounting to PHP22.83 billion. Decliners surpassed advancers at 121 to 66 while 50 shares were unchanged.
“Philippine shares retreated on a red-hot inflation report that could trigger the Fed(eral Reserve) to hike interest rates as early as March,” said Luis Limlingan, Regina Capital Development Corp. head of sales.
He also noted the hike of the 10-year US Treasury yield to more than 2 percent from about 1.51 percent at the start of the year.
Relatively, the peso weakened to PHP51.34 against the US dollar on Friday from PHP51.235 a day ago.
It opened the day sideways at PHP51.36 and traded between PHP51.37 and PHO51.29. The average level for the day stood at PHP51.329.
Volume reached USD913.88 million, lower than the previous day’s USD937.4 million.
Source: Philippines News Agency
