Stocks dive deeper on inflation concerns

MANILA, Philippines — The stock market plunged deeper in the red on its return to action following the Labor Day holiday.

The Philippine Stock Exchange index finished at 6,646.55 yesterday, falling by 0.81 percent or 53.94 points.

The broader All Share index also lost 0.61 percent or 21.36 points to settle at 3,504.58.

Philstocks Financial research and engagement officer Mikhail Plopenio said the local market dropped on concerns by investors that inflation for April may grow faster than March’s 3.7 percent and even exceed the upper end of the government’s target range based on the Bangko Sentral ng Pilipinas’ latest forecast.

He said adding to the woes was the Federal Reserve’s statement which expressed the lack of greater confidence on the US’ inflation.

“The statement further tempered early rate-cut hopes from the Fed and consequently the BSP. It also caused concerns towards the local currency which has an effect on the local bourse,” Plopenio said.

As a result, Plopenio said net market value turnover was quite tepid at P4.19 billion, lower than the year-to-date average of P4.98 billion.

All sectors closed in the red, except for services, which posted a 2.12-percent gain.

Holding firms suffered the biggest loss with a 2.05-percent decline, followed by industrial and property, which dropped 1.76 percent and 1.28 percent, respectively.

Market breadth was negative as decliners crushed advancers, 110 to 76, while 54 issues did not change.

ICTSI led the index members with 5.14 percent rise, while JG Summit lost the most with 4.89 percent.