PSEi drops 1.15 percent to 5,677.12 as inflation surprises; peso ends at ₱62.771
The PSEi closed at 5,677.12 on October 6, down 66.09 points (1.15%). The all shares index lost 0.86% to 3,170.73 (BusinessWorld, Inquirer, Philstar). The peso closed at ₱62.771 per dollar, 15 centavos weaker than Monday's ₱62.621; GMA News carries a typo of ₱61.771. RCBC's Michael Ricafort said hotter inflation could prompt more BSP hikes. The index had risen 2.03% on Monday on easing U.S. rate-hike bets.
Stocks and the peso both react to inflation because it drives interest rates. The peso sits near record lows around ₱62.8 to ₱62.9.
A weaker peso raises the cost of imported goods and dollar debts. For investors, higher rates can hit shares of heavily indebted companies.
Monday's rally was bargain hunting, so Tuesday's fall is partly profit-taking and not a collapse.
Persistent inflation, rate hikes and a record-low peso mean pressure on stocks may continue.
Two sessions, two opposite moves. The index is range-bound between about 5,600 and 5,750. A break below 5,600 or a peso close above ₱63 would signal a change in mood.
DailyDrop Philippines edition No. 3 · Morning · WED., OCT. 7, 2026