By Arra B. Francia, Reporter
LOCAL EQUITIES plunged on Tuesday on fears of more inflationary pressures following the onslaught of typhoon Ompong last weekend.
The benchmark Philippine Stock Exchange index (PSEi) went down 1.71% or 127.22 points to close at 7,286.34 yesterday, sinking to its lowest level since July’s close of 7,233.29. The broader all-shares index also dropped 1.34% or 61.29 points to 4,488.71.
“The market softened up due to the recent typhoon that is causing concern over the possibility that inflation may not come down in the coming months because of the dislocated farmlands, that’s the concern of a lot of investors that this typhoon might cause a delay in addressing inflation,” Summit Securities, Inc. President Harry G. Liu said in a phone interview on Tuesday.
The National Disaster Risk Reduction and Management Council reported that typhoon Ompong (international name: Mangkhut) caused at least P9.3 billion worth of agricultural damage in Northern Luzon. Close to 900,000 people in Luzon have also been affected, with around 61,00 families in evacuation centers. The Philippine National Police reported that the casualty count has reached 74 as of Tuesday.
“Our political situation and these crises have caused inflation to move up, bringing us to a medium-term bearish environment. Until economic managers start to address what should be done and solve the rice problem in the next six months or before the year ends, then we can see the correction,” Mr. Liu said.
Meanwhile, Regina Capital Development Corp. Managing Director Luis A. Limlingan attributed the negative sentiment to the tariff dispute between the United States and China, after US President Donald J. Trump slapped new tariffs on $200 billion worth of Chinese goods. The new levies will be imposed starting Sept. 24.
Following the announcement, Mr. Trump warned China against retaliating, saying the US will pursue additional measures should they counter his move.
“The news will dampen sentiment across Asia this morning with Philippine shares trading much lower as a result,” Mr. Limlingan said in a mobile message.
All sectoral indices ended in the red, led by financials which lost 2.79% or 46.15 points to 1,603.07. Mining and oil shed 2.09% or 200.63 points to 9,356.64; property dropped 2.04% or 76.10 points to 3,651.27; holding firms slumped 1.42% or 102.95 points to 7,101.53; industrials dipped 1.14% or 126.89 points to 10,944.64; and services went down 0.49% or 7.55 points to 1,509.19.
Value turnover recovered to P6.59 billion after some 1.23 billion issues switched hands, compared to the previous session’s P3.94 billion worth.
Decliners were triple the total advancers, 155 to 50, while 35 stocks closed flat. Foreign investors remained sellers, dumping a net P294.33 million worth of funds, higher than Monday’s net sales of P250.88 million.

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