Market tumbles ahead of inflation data
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MANILA, Philippines — The Philippine stock market again opened the week in the red, signifying an overall weakness in sentiment as investors anticipate higher-than-expected inflation in September.
The benchmark Philippine Stock Exchange index (PSEi) closed at 6,304.53, down by 16.71 points or 0.26 percent while the broader All Shares index slipped to 3,399.12, down by 1.71 points or 0.05 percent.
The sectoral gauges were mixed, but mostly down with only industrial and services finishing in positive territory.
Unicapital Securities said yesterday’s session reflected a “healthy pullback” after the market established a short-term bottom at 5,998.31.
“The index remains a bullish trend reversal candidate for as long as it stays above 6,200. We recommend the medium-term contrarian investors and short-term traders to take this healthy pullback scenario of accumulating near 6,303.50 and 6.239.00 support levels,” it said.
Not surprisingly, total value turnover was thin at P3.85 billion. Market breadth was positive with 92 gainers and 75 losers, while 63 issues were unchanged.
Across Asia, markets were mostly lower yesterday as relief over the US Congress passing a last-minute deal to avoid a government shutdown gave way to renewed concerns over interest rates.
With the political distraction out of the way, temporarily at least, investor attention is turning back to the outlook for US rates, with Federal Reserve boss Jerome Powell due to give a speech later Monday and key jobs data out this week.
“Financial markets were bracing for a shutdown, so there’s an element of relief, but it’s only a temporary lifting of one of the clouds hanging over the markets now,” Yung-Yu Ma, chief investment officer at BMO Wealth Management, told Bloomberg.
“Interest rates and Fed hawkishness remain the name of the game and the main driver of the markets over
Asian market action on the first day of the new quarter was somewhat subdued with Hong Kong, South Korea and India closed for holidays. Markets in mainland China were closed for a week-long holiday.
Among those trading, Singapore, Sydney, Wellington, Kuala Lumpur were in the red while Taipei, Jakarta and Bangkok saw gains.
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