Philippine stocks declined on Wednesday after the government reported that consumer prices rose faster in October, the fastest pace in seven months.
The benchmark Philippine Stock Exchange Index (PSEi) closed the session down 0.36 percent, or 23.81 points, to 6,519.58. The broader all-shares index also dipped 0.18 percent, or 7.09 points, to 3,948.72.
“The market was trading a little higher today but dropped after the report showed inflation inching higher,” Astro del Castillo, managing director at First Grade Finance Inc., said in an interview.
The National Statistics Office on Tuesday said prices rose 2.9 percent in October, which it said was the fastest pace since March’s 3.2-percent increase. This, however, was still within the government’s forecasts.
“It’s really more of a kneejerk reaction,” said Del Castillo, noting that inflation tended to trek higher as the fourth quarter, which is typically associated with an uptick in consumer spending, approaches.
Sub-indices, meanwhile, came in mixed with only industrial firms gaining 0.16 percent. All other sub-counters ended in the red, led by the 1.07-percent decline for the property sector.
Trading volume was also stronger than expected, with 3.08 billion shares changing hands for P20.51 billion.
Travellers International Hotel Group Inc., whose initial public offering was valued at P20.4 billion, made its trading debut on Tuesday. However, market sentiments caused the stock to close down 0.02 percent to P11.26 a share.
Travellers led the list of most actively traded stocks on Tuesday. It was followed by SM Prime Holdings Inc., Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co. and Ayala Land Inc.
Other actively traded stocks were SM Investments Corp., Global-Estate Resorts Inc., Universal Robina Corp., Metro Pacific Investments Corp. and Alliance Global Group Inc.—Miguel R. Camus
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