Easing inflation fails to thrill market investors
MANILA, Philippines — A slowdown in the country’s inflation rate was not enough to boost local shares yesterday, with the stock market closing in negative territory.
The Philippine Stock Exchange Composite index tumbled by 41.71 points or 0.64 percent to end at 6,479.93, while the broader All Shares index lost 16.86 points or 0.48 percent to settle at 3,469.47.
“It was a sell on news session in the local market with inflation coming in line at 6.1 percent, right within market expectations,” Luis Limlingan of Regina Capital said.
“With little impetus locally, movements were mainly influenced regionally by the news that regulators are contemplating increasing capital requirements for large banks,” he said.
Most indexes finished in negative territory, except for property and mining and oil which increased by 0.93 percent and 0.13 percent, respectively.
Holding firms, on the other hand, suffered the biggest drop of 1.32 percent, followed by 0.90 percent.
Total value turnover improved slightly to P3.88 billion from the previous day’s P3.36 billion.
Market breadth was negative as decliners toppled advancers, 109 to 70, while 49 issues were unchanged.
Other markets in Asia also retreated yesterday after a two-day rally as profit-takers stepped in and traders weighed the chances of the Federal Reserve skipping an interest rate hike this month.
The tepid performance came after a global advance stumbled in New York and Europe on Monday, with a below-par read on US services sector activity hinting at weakness in a key area of the economy.
Analysts also warned that, with the US borrowing ceiling now lifted, the Treasury is expected to unleash a flood of debt onto the market as it looks to restock its coffers, sucking cash from the financial system and putting pressure on liquidity.
Oil prices sank as the rally from Saudi Arabia’s surprise output cut gave way to demand worries.
Hong Kong reversed early gains of more than one percent after a healthy two-day rally, and there were also losses in Shanghai, Sydney, Singapore and Mumbai. — AFP
- Latest
- Trending