PH shares worst in region after inflation shock
MANILA -The benchmark Philippine Stock Exchange index (PSEi) tumbled nearly 2 percent on Thursday after the September inflation print came in hotter than expected at 6.1 percent.
The PSEi fell 1.90 percent, or 119.60 points, to 6,178.60 while the broader All Shares index slumped 1.47 percent, or nearly 50 points, to 3,348.75.
“The unexpectedly high September inflation print poured cold water on investor sentiment and sank the index to its lowest close in over a week,” said Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.
Soaring consumer prices pushed up inflation above the 5.3 percent recorded in August and well above the median estimate of 5.4 percent, putting a damper on corporate earnings expectations for the third quarter of the year.
READ: PH inflation rose to 6.1% in Sept as food prices, transport cost soared
“This negative surprise brought selling pressure throughout the trading session and was in stark contrast to the positive performance of most Asian stock markets,” Colet said.
Article continues after this advertisementAll PSE subsectors closed in the red. Property (-2.45 percent) and mining and oil (-1.71 percent) were the top underperformers by the closing bell.
Article continues after this advertisementData from the stock exchange showed 676.78 million shares valued at P5.43 billion changing hands while net foreign selling hit P475.8 million.
BDO Unibank Inc. was the top traded stock as it slid 0.93 percent to P138.70 per share.
It was followed by SM Investments Corp., down 1.51 percent to P814; SM Prime Holdings Inc., down 4.36 percent to P29.60; Ayala Land Inc., down 0.35 percent to P28.60; and Universal Robina Corp., down 4.17 percent to P115 per share.
Overall, there were 119 losers against 67 advancers while 45 companies closed unchanged.
