Stocks plunged due to high September inflation rate

Philippine Tribune
Philippine Tribune

Local share prices plunged after the government reported that consumer prices surged in September. 

The main index fell 119.60 points or 1.90 percent to close at 6,178.60 as the Property sector led all sub indices in their retreat. A total of 676 million shares worth P5.43 billion changed hands as losers trounced gainers 119 to 67 with 45 unchanged. 

“Philippine shares fell towards closing as the latest inflation print came below expectations,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

He noted that, in contrast, “regional equities saw gains, buoyed by the  retreat in Treasury yields.”

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “the local market dropped as investors worried over September’s inflation print which came in at 6.1 percent, hitting the upper end of the Bangko Sentral ng Pilipinas’ forecast range. This was also the second consecutive month of inflation rising.“

“September’s inflation print brings the year-to-date inflation to 6.6%, going further away from the government’s 2 percent to 4 percent target range. This heightened worries over the local economy as it raised the chances that the BSP will hike rates further,” he explained. 

Plopenio said, “adding to the woes was the downwardly revised economic growth forecast of the ASEAN+3 for the Philippines from 6.2 percent to 5.9 percent, adding to the institutions that have already trimmed their projections.”

China Bank Capital Corporation Managing Director Juan Paolo Colet said, “the unexpectedly high September inflation print poured cold water on investor sentiment and sank the index to its lowest close in over a week.”

“This negative surprise brought selling pressure throughout the trading session and was in stark contrast to the positive performance of most Asian stock markets,” he added.

 

Leave a comment