Typhoon Ompong, inflation worries drag index anew

MANILA, Philippines — Share prices suffered heavily yesterday,  plunging by 127.22 points to close before the 7,300-mark.

The PSEi settled at 7,286.34, down 1.71 percent, the lowest close since July 11.

Traders said persistent inflation concerns – worsened by the damage left by Super Typhoon Ompong – continue to dampen investor sentiment.

The broader All Shares index was also down by 1.34 percent to finish at 4,488.71.

The rest of the counters were also all in the red with the mining and oil index tumbling by 2.09 percent. The landslide in a mining area in Itogon, Benguet which is believed to have resulted in the deaths of around 100 people, has once again put the spotlight on mining activities in the country.

Total value turnover reached P6.59 billion and foreign buying was at P3.52 billion while foreign selling reached P3.81 billion. It is the 14th straight day of foreign selling.

Renewed jitters over another round of US tariffs on China also added to the uncertainties, said Luis Limlingan of Regina Capital.

“Philippine shares tumbled, as tariff disputes between China and US intensified. Last night, the Dow Jones Industrial Average declined by 92.55 points at 26,062.12. The tariffs will initially take effect at 10 percent on those products but are scheduled to increase to 25 percent on Jan. 1, 2019. In its initial phase, this is a less restrictive outcome than the roughly 20 to 25 percent average tariff rate we had assumed. President Donald Trump also issued a warning to China against retaliating or else the US would pursue additional measures,” Limlingan said.