Acceleration of the United States’ inflation rate for June 2025 added to investors’ concerns, resulting in the negative close of both the Philippine Stock Exchange index (PSEi) and the peso on Wednesday.
The main stock gauge shed 1.89 percent to 6,337.48 points, and the broader All Shares dropped 1.55 percent to 3,748.25 points.
Mining and Oil registered the biggest drop at 2.65 percent and was trailed by the Holding Firms, 2.51 percent; Property, 2.28 percent; Financials, 1.80 percent; Services, 1.69 percent; and Industrial, 1.53 percent.
Volume reached 3.43 billion shares amounting to PHP20.78 billion. Decliners led advancers at 122 to 67 while 59 shares were unchanged.
“Philippine shares succumbed to profit taking as investors digested hotter-than-expected June inflation data,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.
US’ consumer price index posted a 0.3 percent uptick in June, with the annual rate at 2.7 percent. Core inflation rose 0.2 percent to 2.9 percent.
Aside from the inflation development, Limlingan said investors decided to stay at the sidelines still due to the tariff decision of the Trump government.
Also affected by these developments is the local currency, which depreciated to 57.085 to a greenback, from its 56.73 close on Tuesday.
It showed weakness early on when it opened the trade at 56.85 from 56.7 a day ago.
It ranged between 57.095 and 56.85, bringing the day’s average to 56.98.
Volume reached USD1.58 billion, up from USD1.28 billion in the previous session.*PNA
