PSEi extends losing streak to four sessions

The Philippine Stock Exchange Index (PSEi) fell 50.01 points, or 0.88 percent, to 5,629.47 on Thursday, while the peso weakened 13.5 centavos, or 0.22 percent, to P62.775 per US dollar from Wednesday’s P62.64 close, as investors braced for a potentially sharper acceleration in September inflation amid elevated oil prices, high global bond yields and a weaker local currency.

The local market extended its losing streak to four sessions as investors digested the Bangko Sentral ng Pilipinas’ projection that September inflation could accelerate to 6.4 percent to 7.4 percent, well above August’s 6.1 percent.

The central bank cited weather-related food price increases, higher domestic fuel costs and the peso’s depreciation as factors that could push inflation higher. The Philippine Statistics Authority is scheduled to release the official September inflation figure on 6 October.

All PSEi sectors closed lower, with Services suffering the largest decline at 2.03 percent. Trading remained relatively active, with P6.17 billion in value turnover, while foreign investors were net sellers with P1.46 billion in outflows.

ACEN Corp. was the day’s top index gainer, jumping 7.60 percent to P2.69, while AREIT Inc. was the biggest laggard, falling 3.51 percent to P35.70.

The inflation outlook added to pressure from global markets, where longer-term US Treasury yields remained elevated. The US 10-year yield climbed to around 5.31 percent at the start of the fourth quarter, its highest level since 2007, while the 30-year yield reached about 5.65 percent. Reports said the September quarter marked Treasuries’ weakest quarterly performance since 1994, reflecting persistent inflation concerns and expectations that interest rates could remain high for longer.

The peso opened at P62.67 and traded between P62.65 and P62.795 before closing at P62.775. BAP data showed an AM weighted average of P62.731 and a PM weighted average of P62.759, while the full-day weighted average was P62.748. The FX settlement rate was P62.731. Total spot-market volume reached $1.296 billion, down from $1.4264 billion previously. The dollar was broadly supported by rising US yields, with its index reaching 101.66, a three-month high.

Oil prices also added pressure to the local currency, with the Philippines being a net energy importer. Brent crude stood at around $98.67 a barrel on Thursday after gaining 14 percent in September, while US West Texas Intermediate stood near $90.09. Markets continued to monitor developments in the US-Iran conflict and negotiations over a possible ceasefire, although recovering Gulf exports helped ease some supply concerns.