By Arra B. Francia, Reporter
SHARES DROPPED on Tuesday after October’s inflation print came in higher than expected despite showing signs of slowing down.
The 30-company Philippine Stock Exchange index (PSEi) slipped 0.46% or 33.33 points to close at 7,180.11 yesterday, snapping the main index’s two-day rise. The broader all-shares index likewise slumped 0.44% or 19.37 points to 4,372.08.
“I think the market was slightly disappointed that the reported inflation rate was still at 6.7% or a little higher than consensus expectation of 6.5%,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said via text.
“While the print was higher than expected, the fact that it was the same as last month’s reading strengthens the indication that inflation could be topping out already. Oil prices have started to ease, as well as that of rice and other food items, which hopefully will be reflected in next month’s reading,” he said.
The Philippine Statistics Authority reported on Tuesday a headline inflation rate of 6.7% for the month of October, steady from September’s figure. This falls within the Bangko Sentral ng Pilipinas’ 6.2-7% estimate range, but is higher than the Department of Finance’s 6.5% projection.
Regina Capital Development Corp. Managing Director Luis A. Limlingan noted that with inflation expectations out of the picture, investors will now look toward the third-quarter gross domestic product growth data.
“Though the median estimate is at 6.2%, more people are split as to whether growth had improved or not,” Mr. Limlingan said in a mobile message.
Most markets abroad ended mixed as they awaited the results of the midterm elections in the United States. The Dow Jones Industrial Average gained 0.76% or 190.87 points to 25,461.70, while the S&P 500 index added 0.56% or 15.25 points to 2,738.31. The Nasdaq Composite index dropped 0.38% or 28.14 points to 7,328.85.
Back home, four sectoral indices fell, led by the property counter which shed 2.68% or 94.15 points to 3,416.65. Services followed with a 0.78% or 11.72-point decrease to 1,474.74. Industrials dipped 0.11% or 12.75 points to 10,756.54, while financials went down 0.09% or 1.56 points to 1,609.68.
Meanwhile, the mining and oil sub-index climbed 1.45% or 140.74 points to 9,830.24, and holding firms rose 0.78% or 55.40 points to 7,139.80.
Some 1.15 billion issues switched hands, resulting in a P6.76-billion turnover, lower than the previous session’s P22 billion which due to the crossing of shares in Energy Development Corp. (EDC).
Decliners trumped advancers, 103 to 82, while 52 names remained unchanged.
Foreign investors were net sellers for the second straight day, although net outflows dropped to P793.47 million from Monday’s P5.76 billion. The previous session’s figure included the shares crossed from EDC, which will be exiting the PSE this month.

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