The Philippine Stock Exchange Index fell 77.61 points, or 1.2%, on Friday to close the week at 6,405.50.
Claire Alviar, research firm of Philstocks Financial Inc., Regina Capital Development Corp. Chief Executive Luis Limlingan and Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said this comes after the July Consumer Price Index it rose to 6.4%, which was at the higher end of the central bank’s forecast and above 6.1% in June.
Alviar pointed out that traders have also cashed in on their bargain hunt madness.
Ricafort, however, noted that positive offsetting factors still exist despite the higher-than-expected inflation rate. The sharp drop in global crude oil prices, global commodity prices and US Treasury yields dropping to 2.68% could help stabilize the peso’s exchange rate going forward and ease long-term financing costs of some listed companies.
“In the US, the market awaits tonight’s employment report for more clues about the Federal Reserve’s rate hike path and the state of the economy. Economists expect 258,000 jobs added in July,” down from 372,000 in June, according to the Dow Jones Unemployment is also expected to remain stable at 3.6 percent, ”Limlingan said in a text message.
“Global oil prices have fallen to their lowest levels since before the Russian invasion of Ukraine in February. Traders have been panicking over the possibility of an economic downturn later this year, which could precipitate the Energy demand. Benchmark Brent crude futures ended the day 2.75% lower at $ 94.12 a barrel, while West Texas Intermediate crude futures stabilized 2.3% lower at 88. , $ 54 a barrel, “he added.
The total volume of shares registered at 712,868,039 shares with a total value of P12.76 billion.
All sectors are in the red, led by the decline in real estate, down 1.73 percent.
The bears took the advances from 108 to 66, while 49 stocks remained unchanged.