Philippine stocks closed marginally lower Tuesday as July inflation rate came in higher than expected, which could derail the much-anticipated interest rate cut this month.
Regina Capital Development Corp. head of sales Luis Limlingan said the index ended flat despite a strong rebound during the early morning trading as investors monitored economic data in both the United States and Japan, especially for signs of global recession.
The bellwether Philippine Stock Exchange index shed 1.49 points, or 0.02 percent, to close at 6,433.24, while the broader all-shares index inched up by 4.47 points, or 0.13 percent, to reach 3,520.94.
July inflation rate rose to 4.4 percent from 3.7 percent in June. The increase was driven by higher inflation in both food and non-food items, with notable upticks in housing prices, utilities, fuel, meat, corn and fruits.
As the July inflation rate came in slightly worse than expected, the Bangko Sentral ng Pilipinas indicated that government’s monetary policy would remain unchanged.
Analysts earlier predicted that the BSP might start cutting rates in its next policy meeting later this month.
Sectoral indices ended mixed. Mining and oil declined by 1.76 percent, while industrial and financial dropped by 0.54 percent and 0.16 percent, respectively. Property advanced by 0.60 percent, while services and holding firms went up by 0.38 percent and 0.10 percent, respectively.
Value turnover reached P4.59 billion. There were 84 advancers and 97 decliners.
