Stocks sink as rising oil prices cause inflation fears
PHILIPPINE STOCKS ended lower on Thursday to track Wall Street amid inflation concerns due to rising oil prices.
The bellwether Philippine Stock Exchange index (PSEi) declined by 22.26 points or 0.30% to end at 7,239.28 on Thursday, while the broader all shares index inched up 0.59 point or 0.01% to close at 3,855.84.
“The local market extended its decline as it continued to take cues from Wall Street’s negative performance,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
Timson Securities, Inc. Trader Darren Blaine T. Pangan said the index moved sideways on renewed inflation fears amid the rise in global oil prices.
Wall Street’s main indexes ended sharply lower on Wednesday, with the tech-heavy Nasdaq confirming it was in a correction, after a diverse set of corporate earnings and as investors continued to worry about higher US Treasury yields and the Federal Reserve tightening monetary policy, Reuters reported.
The Nasdaq ended down 10.7% from its Nov. 19 closing record high, as stocks sold off into the market close. A correction is confirmed when an index closes 10% or more below its record closing level.
Stocks have gotten off to a rocky start in 2022, as a fast rise in Treasury yields amid concerns the Fed will become aggressive in controlling inflation has particularly hit tech and growth shares. The benchmark S&P 500 is down about 5% so far this year.
The Dow Jones Industrial Average fell 339.82 points or 0.96% to 35,028.65; the S&P 500 lost 44.35 points or 0.97% to 4,532.76; and the Nasdaq Composite dropped 166.64 points or 1.15% to 14,340.26.
Oil prices climbed to their highest since 2014. Brent crude futures rose $1.03 or 1.2% to settle at $87.51 a barrel, while US West Texas Intermediate crude futures ended $1.61 or 1.9% higher at $85.43 a barrel.
Back home, the sectoral indices were mixed on Thursday. Property declined by 54.71 points or 1.72% to 3,124.06; services lost 13.60 points or 0.68% to 1,982; and holding firms slid 8.64 points or 0.12% to end at 7,089.85.
Meanwhile, mining and oil jumped 333.63 points or 3.24% to 10,605.14; financials advanced 16.05 points or 0.97% to 1,665.18; and industrials gained 31.43 points or 0.30% to close at 10,434.22.
Philstocks Financial’s Mr. Tantiangco said market activity improved after days of tepid trading.
Value turnover was at P6.15 billion on Thursday with 2.57 billion issues traded, from the P5.3 billion with 859.13 million shares that changed hands the previous day.
Advancing issues outnumbered decliners, 109 against 81, with 44 names closed unchanged.
Net foreign selling increased to P538.95 million from the P143.67 million logged on Wednesday.
Timson Securities’ Mr. Pangan put the PSEi’s support at 6,940 and resistance at 7,450. — MCL with Reuters
