Connect with us

Hi, what are you looking for?

Economy

PSEi falls on faster-than-expected Nov. inflation

STOCKS ended lower on Friday as market players reacted to the higher-than-expected inflation print logged last month.

The benchmark Philippine Stock Exchange index (PSEi) fell by 59.57 points or 0.82% to close at 7,134.56 on Friday, while the broader all shares index decreased by 22.88 points or 0.53% to 4,250.37.

“(The PSEi and all shares index were) lower because market players reacted to the higher-than-expected CPI (consumer price index) print for November,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a text message.

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the local bourse closed lower due to “profit taking, mixed signals from the US and a higher-than-expected inflation print.”

“Local and regional waded into heavy weather on Thursday with gains withering in the final hour of trading.

Speculation about COVID-19 vaccines and a US stimulus package under consideration weighed on sentiment,” Mr. Limlingan said in a Viber message.

The overall increase in prices of widely used goods accelerated to its fastest pace in 21 months, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary PSA data showed headline inflation stood at 3.3% last month, picking up from the 2.5% in October and 1.3% in November 2019.

The latest inflation result marked the fastest pace in 21 months or since the 3.8% reading in February 2019. It also matched the 3.3% print in March 2019.

The latest headline figure was higher than the 2.7% median in a BusinessWorld poll conducted late last week and also exceeded the 2.4%-3.2% estimate given by the Bangko Sentral ng Pilipinas (BSP) for November.

Year to date, inflation settled at 2.5%, still within the BSP’s 2-4% target as well as the 2.4%-2.6% projection range by the Development Budget Coordination Committee for 2020. The BSP expects inflation to average at 2.4% this year.

Majority of sectoral indices at the PSE recorded losses. Holding firms decreased by 93.10 points or 1.24% to 7,382.98; property dropped 38.33 points or 1.06% to 3,575.87; industrials went down by 70.53 points or 0.75% to 9,246.63; mining and oil slid 16.52 points or 0.18% to 8,717.48; and services inched down 1.57 points or 0.10% to 1,532.11.

Only the financials sub-index climbed, picking up 6.88 points or 0.46% to 1,480.73.

Value turnover on Friday stood at P8.47 billion with some 12.6 billion switching hands, compared to the previous session’s P10.74 billion with some 3.65 billion issues.

Advancers led decliners, 121 to 103, with 49 left unchanged.

Net foreign selling declined to P269.08 million on Friday from the P476.98 million logged in the previous day. – A.Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.