The Philippine Stock Exchange Index (PSEi) marked its sharpest single-day drop in weeks on Wednesday as local investors joined a regional retreat triggered by stronger-than-expected inflation data from the United States.
The benchmark PSEi fell 1.89 percent, or 121.99 points, to close at 6,337.48, while the broader All Shares dropped 1.55 percent, or 59.02 points, to 3,748.25.
Market breadth was negative, with 122 losers, 67 gainers, and 59 unchanged.
Total value turnover surged to P20.78 billion, driven by block transactions, on total trades of 91,801 involving 3.43 billion shares.
Foreign investors were net sellers for the day, unloading P3.47 billion worth of local equities. Foreign buying stood at P12.95 billion, while selling reached 16.42 billion.
The selloff followed a spike in US inflation data overnight. June’s consumer price index came in at 2.7 percent, higher than the 2.6 percent forecast and up from 2.4 percent in the previous month. The data raised fresh doubts over the timing of the US Federal Reserve’s next policy rate cut.
“The local market plunged as investors dealt with the rise in the US inflation last June and its implications on the Federal Reserve’s policy outlook,” Japhet Tantiangco, research manager at Philstocks Financial Inc., said.
“The US inflation print may cause the Fed to prolong their pause in policy rate adjustments,” he added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that some of the inflationary pressure may already reflect tariff-related pass-throughs to consumers.
“Companies are beginning to pass some tariff-related costs to consumers,” Ricafort said, adding that the outlook for US inflation will hinge on the outcome of trade negotiations under President Donald Trump’s administration.
The index was also weighed down by a large overnight placement involving index heavyweights SM Investments Corp. and SM Prime Holdings Inc.
Analysts said the block trades amounted to P7.98 billion and P4.38 billion, respectively.
While both companies have yet to release official statements, market participants described the transaction as involving undisclosed institutional investors.
“The discounted overnight placement on SM group stocks contributed further to the decline,” Alfred Benjamin Garcia, head of research at AP Securities Inc., said.
Across the region, markets were mixed. Jakarta stocks edged higher after Bank Indonesia delivered a surprise rate cut, but most other Asian indices ended lower as sentiment remained cautious.
Taiwan led regional gains, rising 1.2 percent to its highest level since February.
Singapore added 0.3 percent, closing at a record high.
Malaysia and South Korea each fell 0.9 percent, while Thailand slipped 0.3 percent after early gains faded. (With additional report from Reuters)
