Stocks end 6-day rally as investors take profits
THE PHILIPPINE stock market ended its six-day rally on Wednesday, in line with other Asian markets that declined after the Chinese government reported a spike in inflation in October.
The Philippine Stock Exchange index (PSEi) fell by 65.99 points or 0.88% on Wednesday to close at 7,375.68, while the broader all shares index shed 567.33 points or 12.51% to end at 3,964.53.
“With most of the regional markets downed after the release of China’s inflation figures with PPI (producer price index) rising more than expected, local market went on profit taking after moving up for six trading days,” Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said in a text message.
China’s consumer price inflation jumped to a 13-month high of 1.5% from 0.7% in September, fueled by an increase in fuel and food costs.
“China’s October factory gate prices rose at the fastest pace since 1995, beating forecasts and further squeezing profit margins for producers grappling with soaring coal prices and other commodity costs,” Reuters reported.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan also said in a Viber message that investors “locked in some gains” ahead of the release of MSCI’s November Semi-Annual Index Review on Wednesday (Thursday morning, Philippine time).
“The market also took cues from Wall Street’s overnight decline ahead of the release of the US’ October inflation report,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a separate Viber message.
US inflation data for October was scheduled to be released later on Wednesday. A Reuters poll showed economists expect a 0.4% uptick in the consumer price index, from the 0.2% seen in September.
Mr. Tantiangco noted foreigners were net buyers during Wednesday’s session, reaching P517.29 million. However, this was lower than the P812.74-million net foreign buying during the previous trading day.
“Net foreign buying is already on a five-day streak averaging P661.15 million per day,” he said.
Globe Telecom, Inc. was the top index gainer on Wednesday, up by 2.28% or P78 to close at P3,500 per share. Meanwhile, LT Group, Inc. lost 5.12% or 54 centavos to finish at P10 each.
All sectoral indices closed in the red on Wednesday led by financials, which shed 29.51 points or 1.79% to 1,616.38, and holding firms, which lost 72.30 points or 1.01% to finish at 7,085.40.
Property gave up 22.06 points or 0.65% to 3,358.06, while industrials shaved off 33.18 points or 0.30% to 10,919.47. The mining and oil index declined by 25.90 points or 0.26% to 9,912.53, while services inched down by 2.02 points or 0.10% to 2,004.74.
Value turnover climbed to P11.16 billion with 1.17 billion shares switching hands on Wednesday, higher than the P9.49 billion with 1.31 billion issues traded on Tuesday.
Decliners beat advancers, 116 versus 77, as 56 names remain unchanged. — Keren Concepcion G. Valmonte