Stocks retreat as inflation still a concern

MANILA, Philippines — Inflation may have stayed flat at 6.7 percent in October, but it did not ease as investors expected especially after the Department of Finance said inflation may drop to 6.5 percent.

Thus, the Philippine Stock Exchange index (PSEi), the local stock market barometer, was back in the red yesterday, finishing at 7,180.11, down 33.33 points or 0.46 percent.

Likewise, the broader All-Shares gauge was down 19.37 points, or 0.44 percent, to settle at 4,372.08.

Majority of the sectoral indices were down except for the holding firms and mining and oil gauges which managed to stay afloat.

Total value turnover reached P6.78 billion even as market breadth was negative, 103 to 82 while 52 issues were unchanged.

It was also another net foreign selling day at P793 million as foreign investors dumped P4 billion worth of shares as against foreign buying of P3.2 billion.

“What started as a positive trading day eventually fell into negative territory as bearish sentiments fuelled by the stagnant, yet elevated year on year October inflation took over,” Philstock Financials said yesterday.

Despite the inflation results yesterday, the Bangko Sentral ng Pilipinas and the DOF both assured that inflation has already peaked and is already easing.

“Concerted government efforts to tame the prices of goods in the previous months have finally resulted in expected outcomes. And such promising results further motivate the economic team to work closely with all concerned government agencies to more aggressively implement mitigating measures to ease inflation over the medium- and long-term,” the economic team said yesterday.