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THE MAIN INDEX declined for a second straight session on Wednesday on expectations of faster November inflation due to the impact of recent typhoons on commodity prices and amid the political turmoil in South Korea.

The Philippine Stock Exchange index (PSEi) inched down by 0.06% or 4.25 points to end at 6,729.96 on Wednesday, while the broader all shares index rose by 0.01% or 0.71 points to 3,792.48.

“Philippine shares traded flat once again as investors await [Thursday’s] consumer price index (CPI) release. Several are estimating that the latest inflationary data will be slightly above October’s 2.3% but well within the administration’s acceptable range,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

A BusinessWorld poll of 15 analysts done last week yielded a median estimate of 2.5% for the November CPI, within the central bank’s 2.2% to 3% forecast for the month.

“The local market’s sideways movement this Wednesday ended in the negative territory. The negative sentiment within the region caused by the political turmoil in South Korea weighed on the local bourse,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Investors also digested the Philippines’ latest national government debt data, which reached a new record,” he added.

National Government outstanding debt went up by 0.8% or by P126.95 billion to a fresh high P16.02 trillion as of end-October from P15.89 trillion as of end-September due to the peso’s depreciation.

Meanwhile, Asian equities stumbled on Wednesday as traders contended with the political storm in South Korea, where martial law was imposed and subsequently lifted hours later, while a no-confidence vote in France put the euro in the spotlight, Reuters reported.

South Korean President Yoon Suk Yeol said on Wednesday he would lift a surprise martial law declaration he had imposed just hours before, backing down in a standoff with parliament which roundly rejected his attempt to ban political activity.

Majority of sectoral indices closed higher. Financials rose by 0.34% or 7.86 points to 2,262.60; services went up by 0.34% or 7.16 points to 2,113.02; property climbed by 0.3% or 7.65 points to 2,524.24; and industrials increased by 0.15% or 14.31 points to 9,235.30.

Meanwhile, holding firms dropped by 0.8% or 46.07 points to 5,708.23 and mining and oil went down by 0.09% or 7.36 points to 7,481.51.

Value turnover increased to P7.96 billion on Wednesday with 507.68 million issues traded from the P5.77 billion with 492.73 million shares exchanged on Tuesday.

Advancers bested decliners, 103 versus 89, while 42 names were unchanged.

Net foreign selling rose to P537.32 million on Wednesday from P389.94 million on Tuesday. — RMDO with Reuters

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