PSEI crashes DJIA in impending inflation

Ram Christian Agustin & Marianne Ilumba | February 6, 2018

Photo from Business Inquirer.net

The Philippine Stock Exchange index (PSEi) was weighed down by the higher expectations for inflation which produced higher rates for bonds. Philippine inflation rate had unexpectedly shot up to 4 percent, overshooting the 3.5-percent market consensus.

In PSEI’s second trading session for this week, the local stock barometer pulled back and stabilized at 8,500 amidst a sell down of global equities and local inflation rate spikes losing 65.58 points or 0.76.

The Dow Jones Industrial Average (DJIA) on the other hand lost its 2018 year-to-date gains due to the selloff shift from stocks to bonds resulting from the impending inflation where buying opportunities are between 8,400 and 8,500.

All other indices ended in the red. The mining/oil counter lost 2.18 percent while AEV fell by over 4.07 percent.

There were 52 advancers and 159 decliners while 44 stocks were unchanged.