Share prices sink on inflation concerns

MANILA, Philippines — The stock market was back in turmoil yesterday, sinking deeper into bear territory and hitting the 7,000 level again, a day before the government is set to announce the inflation in September which is expected to hit a new peak once more.

The benchmark Philippine Stock Exchange index (PSEi), the local stock market barometer, plunged 117.53 points, or 1.63 percent, to finish at 7,093.34.

Yesterday’s close was the lowest close since June 28 when the index finished at 7,066.57.

Yesterday’s close brought the market deeper into bear territory.

Yesterday’s close was below the bear market territory of 7,250 or the 20 percent decline mark from the index’s all time high of 9,058.62 last January 29, 2018.

Likewise, the broader All Shares index sank to 4,370.34, down 52.63 points or 1.19 percent.

The rest of the counters were also all in the red as market investors dumped their shares ahead of Friday’s inflation announcement.

The property and financials gauges were among the biggest decliners. Market breadth was positive with 69 decliners and 89 advancers. A total of 83 issues were left unchanged.

Total value turnover at P4.305 billion reflected a risk averse investment climate.

Traders said inflation worries and still unresolved concerns on the unabated increase in crude prices have been turning off investors from the Philippine stock market.

Domestic pump prices have reached a record high of up to P62 per liter after oil companies, citing the uptick movement in the global market, implemented this week another big hike of P1 per liter for gasoline.

“The bloodbath never stops,” said Jose Gabriel Perez of Papa Securities.

“The index dropped 117.53 points to close at 7,093.34 ahead of the inflation data release with a net foreign selling figure of P431.4 million,” he said.

He said that while net foreign selling was notably higher than Wednesday’s P281.9 million, value turnover was noticeably low once again at only P4.1 billion.

Heavyweights that lost included JG Summit (down 5.1 percent) and Ayala Land (down 4.7 percent) led the index’s decline.

ALI notably had the highest net foreign selling figure of P94.5 million.

All eyes will be on the inflation figure for September set to be released today. Many are expecting this to surpass the record high inflation of 6.4 percent in August.

“Philippines stocks succumbed to profit taking after one of the rarer occasion of bargain hunting on Wednesday with investors anticipating the inflation results,” added Luis Limlingan of Regina Capital.