Market tumbles on concerns over super typhoon

MANILA, Philippines - The local benchmark index fell for the second consecutive session yesterday as preparations for Super Typhoon Ruby’s landfall took the spotlight away from a slower November inflation data.

The Philippine Stock Exchange index (PSEi) plunged 0.95 percent or 69.29 points to end at 7,230.56, while the broader all shares index likewise plummeted 0.88 percent or 37.90 points to finish at 4,250.

“Sentiment took its cue from progression of preparedness and contingencies for the super typhoon’s anticipated entry,” said Jason T. Escartin, investment analyst at F. Yap Securities.

Several flights and sea trips were already canceled yesterday due to the incoming threat of super typhoon Ruby (international name “Hagupit”).

The entry of the super typhoon in the country overshadowed positive news provided by local data showing that the pace of price increases last month were slower compared to the previous month.

November inflation eased to 3.7 percent from 4.3 percent in October.

“Further weakness might be seen for now, unless fresh leads occur overseas,” Escartin said.

Market overseas shared the local market’s sour mood, as most Asian shares were down while major indexes in Wall Street also ended in the negative territory.

Locally, it was a bloodbath as all counters closed in the red led by services firms which lost 1.68 percent or 35.98 points.