The stock barometer slipped for the second straight session on Thursday as investors braced for the unfolding third quarter local corporate earnings reporting season alongside rising consumer price pressures.
Retreating from nine-month highs, the main-share Philippine Stock Exchange index (PSEi) tumbled by 72.42 points, or 1 percent, to close at 7,157.73.
“Philippine shares took a breather after rallying as investors braced for the release of more third quarter 2021 earnings, the release of GDP (gross domestic product), and more global inflationary concerns,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
In the United States, Limlingan noted that market consensus was expecting a GDP growth of only 2.8 percent amid port congestions, inflation concerns and labor issues.
Selling pressure
“Across the region, equities fell from recent highs as the momentum from the strong earnings season started to fade. Selling pressure came from specific sectors, with energy and financial companies posting among the steepest losses in the market,” he said.
In the Philippines, jitters on inflation have likewise been rising.
“Inflation likely kicked back up in October as the trio of food, transport and utilities sparked a renewed acceleration in prices across the board. Supply shocks and bottlenecks have begun to surface across the CPI (consumer price index) basket which may translate to cost side pressures sticking around for much longer,” said Nicholas Mapa, economist at ING Philippines.
“Despite the supply side nature of this inflation outturn, higher prices may be the norm going forward as authorities attempt to address multiple shocks across the board,” he said.
Value turnover at the stock market amounted to P7.16 billion. Foreigners were mostly sellers, resulting in a net foreign outflow of P656.63 million.
The market was weighed down most by the mining/oil and property counters, which fell by 3.56 percent and 2.66 percent, respectively.