INVESTORS continue to weigh the Federal Reserve’s (Fed) plans following the release of latest US inflation data, resulting in the negative close of the Philippine Stock Exchange index (PSEi) on Friday.

The main equities index dipped by 2.34 percent, or 153.13 points, to 6,379.17 points. All Shares fell by 1.70 percent, or 59.81 points, to 3,457.40 points.

“Philippine shares extended their losses as investors gauged the Fed’s next move given the latest inflation data. Fresh PPI (producer price index) data, which measures prices at the wholesale level, jumped +11 percent year on year. Fed Chair[man] Jerome Powell told NPR yesterday that he couldn’t guarantee a ‘soft landing’ that brought down inflation without causing a recession. His statement was also the reason behind Thursday’s market movements,” said Luis Limlingan, managing director of Regina Capital Development Corp.

“On the economic data front, Friday features a read on April import prices and an early look at May consumer confidence. Meanwhile, oil prices moved higher, erasing intraday losses, supply concerns and geopolitical tension in the EU (European Union) overshadowed the economic fears plaguing financial markets as inflation soars,” he added.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco said: “This decline was the 5th straight day as the rise in the Philippines’

debt-to-GDP ratio to 63.5 percent sparked worries over the possible tightening of fiscal policies moving forward, including higher taxes.”

“Concerns over a soonerthan-expected policy rate hike by the Bangko Sentral ng Pilipinas amid the country’s rising inflation and strong Q1 (first quarter) GDP growth also weighed on sentiment,” he added.

Furthermore, Tantiangco noted that the detection of Covid-19 cases in the country with the Omicron subvariant BA.2.12.1 added to the pessimism.

Friday’s trading was strong with net value turnover posting P10.65 billion, above the year-to-date average of P6.72 billion. Foreigners were net sellers with net outflows amounting to P1.36 billion.

Onshore, all sectoral indices closed in the red on Thursday, except for property, which gained by 0.23 percent, or 6.65 points, to 2,885.94.

Services declined by 31.75 points, or 1.70 percent, to 1,836.75, while holding firms contracted by 263.18 points, or 4.30 percent, to 5,855.81. The industrial index, likewise, decreased by 146.88 points, or 1.62 percent, to 8,932.49; and financials was down by 37.52 points, or 2.38 percent, to 1,537.17. Meanwhile, mining and oil shrank by 223.44 points, or 2.04 percent, to end at 10,749.61.

Decliners continue to outnumber gainers, 126 against 68, while 41 names remained unchanged.