Inflation jitters send stocks stumbling

Likewise, the broader All Shares gauge lost 22.83 points or 0.51 percent to end at 4,442.09.
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MANILA, Philippines — The stock market opened the trading week in the red once more, finishing at 7,222.08, down 54.74 points or 0.75 percent.

Likewise, the broader All Shares gauge lost 22.83 points or 0.51 percent to end at 4,442.09.

Most counters ended in negative territory except for financials which ended flat and services which rose slightly higher by 0.48 percent.

Total value turnover was likewise thin at P4.234 billion. Market breadth was negative, 101 to 75 while 53 issues were left unchanged.

Traders said market investors are staying on the sidelines ahead of the scheduled release of the September inflation figure on Oct. 5. The Department of Finance said September inflation may remain steady at 6.4 percent but the Bangko Sentral ng Pilipinas sees inflation soaring to a fresh nine month high of 6.8 percent.

Inflation rose to 6.4 percent in August, the highest level in nine years, aggravated by soaring oil prices and problems in supply of food including rice.

Net foreign selling continued yesterday with foreign buying at P2.05 billion and foreign selling at P2.73 billion.

Jonathan Ravelas, market strategist at BDO, said yesterday’s market reaction highlighted the market’s inability to sustain gains above the 7,300 levels.

“We will continue to see the market to remain vulnerable to a test toward the 6,900 to 7,000 level in the near-term,” Ravelas said.

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