PSEi down on July inflation figures
THE Philippine Stock Exchange index dropped by 77.61 points, or 1.2 percent, on Friday to close the week at 6,405.50.
Philstocks Financial Inc. research associate Claire Alviar, Regina Capital Development Corp. Managing Director Luis Limlingan and Rizal Commercial Banking Corp. chief economist Michael Ricafort said this comes after July’s consumer price index quickened to 6.4 percent, which was at the upper end of the central bank’s forecast and higher than June’s 6.1 percent.
Alviar pointed out that traders also cashed in on their bargain-hunting spree.
Ricafort, however, noted that there are still offsetting positive factors despite the higher-than-projected inflation rate. The sharp decline of global crude oil prices, global commodity prices and US Treasury yields easing to 2.68 percent could help stabilize the peso exchange rate going forward and ease long-term financing costs of some listed companies.
“In the US, the market is waiting for tonight’s jobs report for further clues about the Federal Reserve’s path of rate hikes and the state of the economy. Economists expect 258,000 jobs were added in July, down from 372,000 in June, according to Dow Jones. Unemployment is also expected to hold steady at 3.6 percent,” Limlingan said in a text message.
“Global oil prices dropped to their lowest levels since before Russia’s February invasion of Ukraine. Traders panicked over the possibility of an economic recession later this year, which could plunge energy demand. Benchmark Brent crude futures ended the day 2.75 percent lower at $94.12 a barrel, while West Texas Intermediate crude futures settled 2.3 percent lower at $88.54 per barrel,” he added.
Total volume of shares registered at 712,868,039 shares with a total value of P12.76 billion.
All sectors were in the red, led by the decline of properties, down 1.73 percent.
Decliners edged advancers, 108 to 66, while 49 securities remained unchanged.