The local stock barometer slid below the crucial 7,800 mark on Wednesday as investors were spooked by higher-than-expected Philippine August inflation alongside emerging market contagion jitters.
The main-share Philippine Stock Exchange index (PSEi) fell by 129.55 points or 1.64 percent to close at 7,752.27 as foreign selling intensified alongside the downturn across regional markets.
The country’s annual inflation rate surged to 6.4 percent in August from 5.7 percent in July due to price pressures on basic food items, alcoholic beverages and tobacco and transport services.
Meanwhile, emerging market currencies have been battered by jitters on Argentina, Turkey, South Africa and, closer to home, in Indonesia. The rupiah has depreciated to a 20-year low against the dollar, prompting its central bank to boost its monetary arsenal.
“As of now, the market is in a trading range between 7,500 and 7,900,” Papa Securities said in a research note.
All counters declined but the PSEi was weighed down most by the financial counter, which fell by 2.81 percent.
The holding firms, mining/oil and property counters all lost more than 1 percent, while the industrial and services counters also slipped.
Total value turnover stood at P5.89 billion. Net foreign selling was heavy at P1.04 billion for the day.
There were 146 decliners that overwhelmed 51 advancers while 38 stocks were unchanged.
Investors dumped shares of BDO, which lost 5 percent, while Metro Pacific and JG Summit shed close to 4 percent.
SM Prime, BPI, Megaworld, URC and Metrobank all fell by about 2 percent, while Ayala Land, Ayala Corp., SM Investments and Globe Telecom faltered by more than 1 percent.
Security Bank, GT Capital, Jollibee and San Miguel Corp. also slipped.
One notable decliner outside the PSEi was Italpinas, which gave up 4.55 percent after the previous day’s hefty gain. The company announced plans to amend its articles of incorporation to allow the convertibility of preferred shares that may be issued.
There was likewise a disclosure on the sale of Italpinas shares by its president Jose Leviste III and chair Romolo Nati.