LOCAL EQUITIES slumped on the first trading day of September as investors awaited the release of August inflation data, which is expected to clock in another fresh high.
The bellwether Philippine Stock Exchange index dumped 0.29% or 23.49 points to close at 7,832.22 on Monday. The broader all-shares index was flat at 4,772.17, losing just 0.16 point.
“Our index fell today as market digests the news that the inflation for August may hit a 9-year high as prices of basic goods go up,” Timson Securities, Inc. trader Jervin S. de Celis said in a mobile message on Monday.
The Philippine Statistics Authority is scheduled to release inflation data for the month of August on Wednesday, Sept. 5.
Preliminary figures already indicate that last month’s results were faster than July’s 5.7%. The Bangko Sentral ng Pilipinas’ Department of Economic Research last Friday said headline inflation likely fell within the range of 5.5-6.2%, higher than the central bank’s 5.1-5.8% estimate last July.
A BusinessWorld poll of 14 economists meanwhile yielded a median inflation estimate of 5.9%, matching the Department of Finance’s estimate announced on Monday.
“Market participants are also wary of the effect of the stronger dollar and a possible rate hike from the US fed to the global trade as the rift between US and China as well as Canada remains unsettled,” Mr. De Celis added.
Meanwhile, Regina Capital Development Corp. Managing Director Luis A. Limlingan pointed to profit-taking for Monday’s performance.
“Philippine shares traded on a slightly negative note to take profit from the window dressing from last Friday and also as there was a lack of leads,” Mr. Limlingan said in a separate message, noting that United States markets will be closed for the Labor Day holiday.
Wall Street indices were mixed last Friday, as the Dow Jones Industrial Average shed 0.09% or 22.10 points to 25,964.82. The S&P 500 index eked out a gain of 0.01% or 0.39 point to 2,901.52, while the Nasdaq Composite index rose 0.26% or 21.17 points to 8,109.54.
Most Asian indices also ended in negative territory amid escalating tensions on the trade deal between the United States and China.
Back home, sectoral indices were split between gainers and losers. The mining and oil counter led advancers, jumping 0.65% or 64.41 points to 9,968.37. Holding firms went up 0.02% or 1.59 points to 7,766.26, while services added 0.09 point to 1,537.27.
Meanwhile, property gave up 0.88% or 34.98 points to 3,910.55. Financials slipped 0.44% or 8.08 points to 1,802.01, while industrials dropped 0.43% or 49.4 points to 11,223.45.
Some 736.95 million issues valued at P5.60 billion switched hands, down from Friday’s P8.02 billion.
Decliners beat advancers, 101 to 85, while 54 names ended flat.
Net foreign outflows widened to P702.46 million on Monday from the previous session’s P45.41-million net sales. — Arra B. Francia

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