Stocks fall as investors await US inflation data

MANILA, Philippines — Local share prices fell yesterday as investors await for the latest consumer price index (CPI) results in the United States.

The benchmark Philippine Stock Exchange index (PSEi) closed 1.30 percent or 81.02 points lower at 6,149.18 yesterday, while the broader All Shares index closed 0.85 percent or 28.62 points down at 3,330.81.

“Philippine equities declined as investors looked toward the release of the US CPI for more insights on inflation,” Luis Limlingan of Regina Capital said.

The US CPI reading on Wednesday will be followed Thursday by the producer price index, with the Federal Reserve’s policy meeting next week.

“Wall Street’s focus is now on the August CPI report due Wednesday. Economists are estimating a 3.6 percent year-on-year rise in inflation, according to Dow Jones,” Limlingan said.

Claire Alviar of Philstocks Financial echoed this observation, noting that the decline mirrored the trend seen in many other Asian markets, as investors booked some gains ahead of the release of the US inflation data.

“This crucial data is anticipated to affect the decision of the Fed on interest rates at their upcoming meeting this month,” she added.

A total of 53,186 trades valued at P4.734 billion were made yesterday, while volume turnover stood at 740,936 million.

Declines outnumbered advances, 100 to 70, while 47 issues were unchanged.

Elsewhere in Asia, equities mostly fell ahead of a crunch US inflation report, with investors increasingly nervous that a recent spike in oil will put fresh upward pressure on consumer prices and force the Federal Reserve to lift interest rates again.

The central bank has insisted that its decision-making on monetary policy will be data-driven as it assesses a range of figures, which have for much of 2023 suggested that more than a year of tightening is having the desired effect.

That had fanned optimism that July’s hike was the last and officials would allow its measures to work through the economy and bring inflation to heel.