PSEi plunges as Diokno warns inflation could shoot as high as 6.5%

·Contributor
·2 min read
Traders look at a electronic trading board inside the Philippine Stock Exchange (PSE) in Makati City, Metro Manila January 18, 2016. The PSE's composite index PSEi took a nosedive during the inauguration of Ferdinand
Traders look at a electronic trading board inside the Philippine Stock Exchange (PSE) in Makati City, Metro Manila January 18, 2016. The PSE's composite index PSEi took a nosedive during the inauguration of Ferdinand "Bongbong" Marcos, Jr. on June 30, 2022. REUTERS/Romeo Ranoco

As the Philippine Stock Exchange Index (PSEi) took a nosedive of 2.34%, or 147.76 points at 6,155.43 and All Shares index sank at 1.56%, or 52 points at 3,336.23, newly-appointed Department of Finance (DOF) Secretary Benjamin Diokno warned that the inflation for the month of June was expected to be between 5.7% to 6.5%.

In a series of tweets, Diokno said that the Bangko Sentral ng Pilipinas (BSP) will continue to monitor closely the situation, “to enable timely intervention to arrest emergence of further second-round effects, consistent with BSP’s mandate of price and financial stability.”

The plunge also happened as President Ferdinand “Bongbong” Marcos Jr. was being inaugurated as the 17th president, who has yet to lay down his economic plans amid rising cost of fuel, skyrocketing government debt, and a looming global recession.

“The continued increase in domestic oil prices, upward adjustment in electricity rates, higher prices of key food items, and peso depreciation are the primary sources of inflationary pressures during the month,” Diokno said, as his statements hint an increase in prices of basic consumer goods, compared to May 2022’s 5.4% inflation rating.

Meanwhile, holding firms and services shed 3.42% and 3.87% respectively, while financials and property closed in the red. Industrial and mining and oil stocks advanced.

The trading volume also saw a slight increase from the previous session, with 882.15 million shares totalling P6.44 billion, with Universal Robina Corp. being the top trading company as it rose 2.78% to P111 per share, followed by BDO Unibank inc., who was down 3.32% at P110.50, and then Ayala Land Inc., down 4.85% to P25.50, International Container Terminal Services Inc., down 6.07% to P184, and then SM Investments Corp., down 4.63% to P782.

Overall, according to the data from the Philippine Stock Exchange, there were a total of 117 losers, 71 gainers, while 47 companies remained unchanged.

Marvin Joseph Ang is a news and creative writer who follows developments in politics, democracy, and popular culture. He advocates for a free press and national democracy. The views expressed are his own.

Watch more videos on Yahoo:

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting